Our analysis shows a reduction in the U.S. tax rate will drive a 6% benefit to EPS while a cash repatriation holiday and share buyback could drive an incremental 10% EPS benefit (assuming 25% of repatriated cash used for stock buyback),” Citi analysts wrote on the impact on Apple from Trump slashing the corporate tax rate to 15% from 35%. We see Apple as a significant beneficiary of Trump tax reforms. — Citigroup analysts Jim Suva and Asiya Merchant
“Apple could be staring down the barrel of a tax-cut-driven profit explosion,” Sozzi reports. “Playing around with Citi’s numbers and doing some analysis, Trump’s tax proposal — as it will be laid out on Wednesday — could boost Apple’s stock price by at least another 32%. If the iPhone 8 supercycle happens, that could make the gain even greater.”
Read more in the full article here.
MacDailyNews Take: Oh, okay, we’ll take another another 32% or more!