Apple is added to BofA’s best ideas list; COVID-19 seen as transitory issue

On Monday, BofA Global Research analyst Wamsi Mohan reiterated his “Buy” rating with a $300 price target and added AAPL stock to the firm’s best ideas list, giving Apple shares a boost.

BofA Best IdeasEric J. Savitz for Barron’s:

Mohan pointed out in a research note that Apple has a stellar balance sheet, with about $200 billion in gross cash, and about $100 billion in net cash, or about $22 a share…

And the impact of COVID-19 on Apple’s business will be transitory, Mohan said. “Apple continues to enjoy competitive advantage with its ecosystem, App Store, large/captive installed base and brand value,” he wrote. He expects both an earnings recovery and multiple expansion from current levels.

MacDailyNews Take: As we wrote earlier this morning, “Apple’s cash-rich coffers are a testament to AAPL’s surprising strength.” As we endure the COVID-19 pandemic, investors who are looking for stay-at-home plays are smartly investing in Apple.

1 Comment

  1. In my pea-brain, all the companies that take government money are going to have to suspend dividend payments. And who probably won’t take Uncle Sam money and therefore still ay dividends? AAPL. Dividend seekers investors will have fewer choices to park their money once the bail out begins and Apple will benefit.

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