Jefferies Says Apple (AAPL) Jobs News "Anticipated", Says Could Prompt Buyback or Dividend
Tweet
Share
E-mailGet Alerts AAPL Hot Sheet
Price: $305.93 +0.22%
Rating Summary:
44 Buy, 29 Hold, 9 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
44 Buy, 29 Hold, 9 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Jefferies reiterated their Buy rating and $500 price target on Apple (NASDAQ: AAPL) following news that CEO will step down from the CEO position.
Analyst Peter Misek states, "In our view, the Street has been anticipating Steve Jobs' resignation for some time now. While many view Jobs as the visionary, we believe the success of the company is also due to its ability to execute. We believe Apple has a long roadmap ahead, and that the new CEO Tim Cook will be able to execute. We believe this event presents a buying opportunity and mgmt may consider a buyback or dividend."
On Tim Cook, Misek said that with the iPad 2 he has demonstrated his deep
understanding and expertise in manufacturing and supply chain management. "Even with the unfortunate events in Japan around the time of the iPad 2 release, Tim Cook was able to double or sometimes triple source component suppliers. To date, no competitor has been able to gain meaningful share in the tablet market; and, in our view, Cook's leadership during the introduction was critical to this."
Jobs staying on as Chairman is "very positive" according to the analyst. Misek also believes Steve Jobs has his fingerprints on Apple products for the next two years and his vision of the Apple ecosystem goes beyond five years.
Commenting on a buyback or dividend, the firm notes "Given the massive $76B in cash that Apple has and the negative stock movement surrounding this event, we believe the Board is now likely to consider more seriously a dividend or stock repurchase program."
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $376.18 yesterday.
Analyst Peter Misek states, "In our view, the Street has been anticipating Steve Jobs' resignation for some time now. While many view Jobs as the visionary, we believe the success of the company is also due to its ability to execute. We believe Apple has a long roadmap ahead, and that the new CEO Tim Cook will be able to execute. We believe this event presents a buying opportunity and mgmt may consider a buyback or dividend."
On Tim Cook, Misek said that with the iPad 2 he has demonstrated his deep
understanding and expertise in manufacturing and supply chain management. "Even with the unfortunate events in Japan around the time of the iPad 2 release, Tim Cook was able to double or sometimes triple source component suppliers. To date, no competitor has been able to gain meaningful share in the tablet market; and, in our view, Cook's leadership during the introduction was critical to this."
Jobs staying on as Chairman is "very positive" according to the analyst. Misek also believes Steve Jobs has his fingerprints on Apple products for the next two years and his vision of the Apple ecosystem goes beyond five years.
Commenting on a buyback or dividend, the firm notes "Given the massive $76B in cash that Apple has and the negative stock movement surrounding this event, we believe the Board is now likely to consider more seriously a dividend or stock repurchase program."
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $376.18 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- KeyBanc Reiterates Underweight Rating on Apple (AAPL)
- Jefferies upgrades Five Below to Buy, sees path to TJX-like re-rating
- ACCO Brands to buy European peripherals brand Trust for ~$100M revenue
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, Steve Jobs, Dividend, Stock BuybackSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
