“Apple’s capital return plan will get much larger, according to one Wall Street firm,” Tae Kim reports for CNBC.
“Citi Research reiterated its buy rating for Apple shares, saying the company will use tax reform proceeds to significantly increase its stock buyback and dividend program,” Kim reports. “Analyst Jim Suva wrote in a note to clients Wednesday, ‘Looking ahead, we expect investor focus to be on the impact from Apple’s capital returns strategy, which we estimate could be a $100 billion increase, the 2H18 lineup, and continued strength in Apple’s Services segment.'”
“Suva said a $100 billion increase is double the amount Apple has added in each of the previous two years,” Kim reports. “As a result, the analyst said Apple will more than double its annual share buyback, which averaged $32 billion a year in the last five years.”
Read more in the full article here.
MacDailyNews Take: Yes to buybacks!
When shares are undervalued, as Apple’s are, it makes sense for Apple to buy them back.
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