“Apple CEO Tim Cook should take a few minutes out of his day on Wednesday and picture the profits that could be about to rain down thanks to President Trump’s tax proposal,” Brian Sozzi reports for TheStreet.
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!