“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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