Analyst: ‘Mind-blowing’ cash flow could push Apple to $150

“Apple’s free cash flow is ‘mind-blowing’ and can push shares of the tech giant to $150, Barclays analyst Ben Reitzes told CNBC on Tuesday,” Michelle Fox reports for CNBC.

“In the last quarter, that free cash flow per share beat the Street by about 40 percent, he said,” Fox reports. “‘Free cash flow is what, in my training, pushes stocks and really moves it. That’s what you get to reinvest in the business, buy other companies and ultimately return cash to shareholders,’ Reitzes said in an interview with ‘Squawk Alley.'”

“He anticipates the free cash flow, which he said was overlooked by many in the last earnings report, will hit people on a delay, especially into a big stock buyback program,” Fox reports. “He also believes CEO Tim Cook and chief financial officer Luca Maestri have come of age in the past year. ‘[They] really show they care about the stock in addition to products,’ he said. ‘They are shepherding a story now better than they ever have.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “David E.” for the heads up.]


  1. I think these analysts are just getting a little bit ahead of themselves. I believe Apple is certainly worth more than it is now but the big investors likely have their doubts even as they watch Android crumble right under their noses. Institutional ownership still remains at around 62% according to Google Finance and as near as I can tell it hasn’t moved in the last 52 weeks. Compared to Microsoft’s 73% IO, I’d say Apple has quite a lot to do to convince those big investors to jump on board.

    Microsoft’s P/E is still quite a bit better than Apple’s P/E despite Apple breaking all sorts of quarterly records. There must also be some unexplained reasons for Apple’s relatively low institutional ownership for a tech company that some claim is like a start-up company. Certainly more so than Microsoft.

  2. That enormous cash flow is coming directly out of Google, Microsoft and Amazons pockets. When counted in dollar bills, Niagara Falls doesn’t even come close to the volume being transferred.

  3. The trouble with using last quarter as a basis is that it had the one-off effect of years of pent-up demand for a larger-screen iPhone. Once that demand has been met it may be harder to sustain the numbers going forward.

  4. Apple is so valuable and profitable, you have just got to wonder why it doesn’t sack all these financial tax advisors and repatriate its cash horde to the States and/or where corporate taxes are due based upon sales in each country – as an example of a socially responsible, decent business who are in it to make great tech and not just piles of cash for the never satisfied greedy of this world.

    Of all the companies out there it can afford to do so and Tim Cook and Mrs Powell could then excuse themselves from feeling the need to run around like Bill Gates stuffing dollars into all sorts of projects for the rest of their lives.

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