Canaccord Genuity Morning Coffee on Apple (AAPL): The Big AAPL
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Price: $309.35 -0.63%
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Apple (Nasdaq: AAPL): The Big AAPL.
Canaccord analyst says, "As Apple climbs past the lofty heights of $340 per share, a price commanded by few other publicly traded companies, many investors have wondered, “when does a company become too big to be considered an unattractive prospect for future growth?” Credit Suisse says it has heard this question several times in recent weeks, and its answer to investors has been the same: never. Credit Suisse does not deny Apple's mammoth size. The company amounts to roughly 2.5% of the S&P 500 in terms of market cap, an awesome figure given that the S&P 500 comprises some of the biggest companies in the world. Even still, Credit Suisse does not believe that the relative size of a company should be a barrier to its’ growth prospects. From a historical perspective, it observes there have been several cases of companies contributing more than 2% of the S&P 500 that nevertheless continued to outperform the index. Apple has increased its weight in the S&P 500 by 1.5% in the last two years, but while this growth rate is impressive, it has historically been bettered by eight other companies in a similar position and timeframe, including the likes of Exxon Mobil (NYSE: XOM), Wal-Mart (NYSE: WMT), Procter & Gamble (NYSE: PG) and General Electric (NYSE: GE). The bottom line is that Credit Suisse believes Apple can continue to grow. It does not think there should be any impediments to growth from a “too big to grow” perspective, given the favorable bull case on the back of a low-end iPhone, increasing EM penetration and improved enterprise traction."
Canaccord analyst says, "As Apple climbs past the lofty heights of $340 per share, a price commanded by few other publicly traded companies, many investors have wondered, “when does a company become too big to be considered an unattractive prospect for future growth?” Credit Suisse says it has heard this question several times in recent weeks, and its answer to investors has been the same: never. Credit Suisse does not deny Apple's mammoth size. The company amounts to roughly 2.5% of the S&P 500 in terms of market cap, an awesome figure given that the S&P 500 comprises some of the biggest companies in the world. Even still, Credit Suisse does not believe that the relative size of a company should be a barrier to its’ growth prospects. From a historical perspective, it observes there have been several cases of companies contributing more than 2% of the S&P 500 that nevertheless continued to outperform the index. Apple has increased its weight in the S&P 500 by 1.5% in the last two years, but while this growth rate is impressive, it has historically been bettered by eight other companies in a similar position and timeframe, including the likes of Exxon Mobil (NYSE: XOM), Wal-Mart (NYSE: WMT), Procter & Gamble (NYSE: PG) and General Electric (NYSE: GE). The bottom line is that Credit Suisse believes Apple can continue to grow. It does not think there should be any impediments to growth from a “too big to grow” perspective, given the favorable bull case on the back of a low-end iPhone, increasing EM penetration and improved enterprise traction."
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