JPMorgan Positive On Apple (AAPL) Dividend, Says Buyback Was a "Nice Surprise"
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Price: $305.93 --0%
Rating Summary:
45 Buy, 28 Hold, 9 Sell
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Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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JPMorgan's Mark Moskowitz is the latest to comment on Apple (NASDAQ: AAPL) following today's dividend and share buyback announcement.
The analyst expects the stock to continue to climb in the coming days following the announcement. While the 1.8% dividend is smaller than the 2-3% they had hoped for, the share buyback was a "nice surprise."
Moskowitz continues to "scarcity issue" to develop with the dividend. "We expect dividend/income-based investment funds to build bigger positions than ones that have been initiated in recent weeks."
The dividend is also not a sign that Apple's high-growth days are over, he said. Instead it "reflects the major cash flow generation power that is attached to Apple's high-growth operating model, which we think can continue due to the company’s low penetration rates in its end markets."
The firm maintained their Overweight rating and price target of $625.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $585.57 yesterday.
The analyst expects the stock to continue to climb in the coming days following the announcement. While the 1.8% dividend is smaller than the 2-3% they had hoped for, the share buyback was a "nice surprise."
Moskowitz continues to "scarcity issue" to develop with the dividend. "We expect dividend/income-based investment funds to build bigger positions than ones that have been initiated in recent weeks."
The dividend is also not a sign that Apple's high-growth days are over, he said. Instead it "reflects the major cash flow generation power that is attached to Apple's high-growth operating model, which we think can continue due to the company’s low penetration rates in its end markets."
The firm maintained their Overweight rating and price target of $625.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $585.57 yesterday.
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