RBC: President Trump’s tax plan could drive Apple to trillion dollar market value

“Apple Inc. could close in on a trillion-dollar market capitalization next year — and if it does, it may have President Donald Trump to thank,” Barbara Kollmeyer reports for MarketWatch. “That’s according to a scenario laid out by analysts at RBC Capital Markets, who said Apple may turn out to be one of the biggest beneficiaries of the Trump administration’s planned U.S. tax changes.”

“‘While there are significant uncertainties around corporate tax reform, we think it could provide Apple EPS (earnings per share) a $4.00-4.50 tailwind and drive the stock closer to a trillion dollar market-cap scenario,’ said the RBC team in a note to clients,” Kollmeyer reports. “Late last month, Trump and top congressional Republicans proposed sharp cuts to tax rates on businesses and many individuals. Under the plan, the top corporate tax rate would be cut to 20% from 35%.”

“The bank said Apple shares are currently at an ‘attractive entry point for investors to benefit from its ability to return to revenue and EPS growth in FY217,’ adding that ‘multiple catalysts’ remain from such factors as iPhone ramps and product refreshes on its Macs and iPads,” Kollmeyer reports. “‘We believe the fundamental reality remains that AAPL’s valuation is materially subpar to what we anticipate is its long-term revenue and EPS potential,’ said RBC.”

Read more in the full article here.

MacDailyNews Take: Hopefully, sound tax reforms are enacted as soon as possible. Apple deserves to be the world’s first true trillion-dollar company.

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19 Comments

  1. Freedom Caucus is already backing away from the current plan. Why don’t we just call them Democrats so at LEAST folks understand that Republicans done have control of the house?

    1. Am I understanding that you think that the Freedom Caucus, the most conservative and most Republican members of Congress, are secretly Democrats?

      Has it really only taken 11 months since the election for Trump supporters to so utterly destroy the Republican Party and everything it has stood for since 1854 that nobody is now allowed to call themselves Republican unless they support every detail of every notion that comes into The Man’s head (that he hasn’t contradicted yet)?

      Please read the US Constitution. It creates three EQUAL branches of government, and requires that the budget must start off in the House of Representatives, not in that other House at the far end of Pennsylvania Avenue. There is nothing in the Constitution that requires members of Congress to surrender their independent judgment to somebody who got 62 million votes from a country with 323 million people.

        1. iSecond that Peter.

          GTFO of the U.S.A. auramac. LEAVE. ADIOS. BYE BYE. GOOD RIDDANCE.

          iPonder you are one of those crybaby, millennials who need special safe spaces to go hide and play go fck yourself. Pathetic you are Mmm.

        2. And what if we choose to remain and fight for our country and what it has stood for since 1776? You going to send over a bunch of “good people” with crewcuts and Tiki Torches to chant Nazi slogans at us?

          I only agree with them on one thing: “You will not replace us!”

          1. Fight for our country? I was in stitches laughing!

            The only only thing you are good at is fighting for the Dinosaur Democrat Party FAILURES since the 1960s and FAKE pretension reasons for doing so …

  2. Since Trump cannot get along with his own party I have serious doubts concerning anything he proposes that involves new spending or taxation. Paul Ryan can kill anything Trump wants at any time because the House controls all spending bills and all taxation bills. McConnell likewise can sentence any Trump initiative to a slow and grinding death by Committee and Sub-Committee.

    We need a reform of our tax system but a massive one sided give away to corporations and investors is not the answer. I would gladly take corporate taxes to ZERO in exchange for eliminating of depreciation, the taxing of personal investment income at the same rate as labor, and a transaction tax on trades. That would be more fair to all and encourage investment.

  3. Shame MDN. Trickle down Reaganomics never worked. The 1% don’t need tax breaks. In the 1950s-1970s the top tax rate was as high as 90% and middle class prospered with living wages bc corporations avoided tax by investing back into the company and its workers. Workers had more spending power.

    1. How is tax break to corporations the 1%?

      If you have savings in retirement plans, 401s, government pensions , mutual funds : it’s all in corporate shares. Apple is 70% owned by funds the rest divided between rich and average shareholders.

      Besides that destroy corporations and there would be no jobs including government jobs as corporate taxes and corporate employees fund practically everything. What you need is a tax rate that is equitable, that gives enough but isn’t so high that it’s non competitive. Want more jobs? you want corporations to open .

      Besides at the end of they day consumers pick up a lot of corporate taxes as the cost is just mostly passed on into the products. And consumers already pay income tax, sales taxes, property tax, inheritance taxes, tolls, levies like carbon tax on fuel, tax on the dividends on their shares etc.

      And I don’t even to go into how government wastes money…

  4. The only reason this orange clown has been tolerated in Washington was the hope of tax reform (and repeal and replace). Republicans backed him, because they needed someone who would just sign their legislation… but the Republicans are too fragmented and dysfunctional… incapable of true governenance. Instead we have to live with the drama of his reality tv show madness. What an embarrassment.

      1. “the Republicans most certainly did NOT back him”

        WTF? What kind of nonsense revisionist history is this? He was nominated by the GOP at their convention. The head of the RNC became his chief of staff. Even Ted Cruz bent the knee.

        Republicans embraced this clown. Now they own him.

      2. For those who do not know him, Rep. Dana Rohrabacher has been the leading Congressional apologist for Russia for over two decades. Among other things, he was essentially the only Senator or Member of Congress to defend the invasion of Georgia and the annexation of Crimea. Hardly surprising that he would be trying to divert attention from the folks that actually hacked the DNC, according to absolutely everyone in the intelligence community.

  5. I’m not holding my breath for this corporate tax reform. I get the feeling it’s going to take a long time to go through, (if ever). This year is nearly gone, so it’s likely I’ll have to wait at least another year. Some idiot saying Apple can reach the $1T market cap with the tax reform is like saying a pig could fly if it had wings. This is just a “buy Apple” tease. No one is going to be buying Apple now without the tax reform being a sure thing. It doesn’t seem like a sure thing at all, to me.

    Last year, I thought (had hoped) POTUS was going to somehow push it through with the greatest of ease. I had the feeling Tim Cook thought it would happen. Now I see the error in my reasoning. If it’s anything that might help Apple gain in value, then it’s not going to happen in a timely fashion. Apple just had to be the main tech company that NEEDS that overseas cash for value. The other tech companies are making gains just fine without the tax reform.

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