Citi Research Analyst: Apple Capital Returns Will Increase to $400 Billion
Giving this estimate is Citi Research analyst Jim Suva, who in a report to clients on Wednesday predicted that Apple will increase the size of the capital return plan by 100 billion U.S. dollars.
Apple announced on Monday that the next earnings report, which is the financial report for the second quarter of fiscal year 2018, will be released on May 1. The analyst conference call after the financial report will be held on the afternoon of May 1, Pacific time. 2:00 (5:00 am Beijing time, May 2nd) If Jim Suva's predictions come true, then its new $100 billion capital return plan will be announced on May 1 local time.
If Jim Suva expects it, Apple will add 100 billion U.S. dollars to the capital return plan, which means that its new scale this year will be twice the size of the previous two years. According to Jim Suva, Apple is significantly The increase in the size of the capital return plan is mainly due to the tax reform, which can transfer large amounts of cash deposited overseas to the United States.
Apple’s capital return plan is mainly divided into two aspects: stock repurchase and distribution of dividends to shareholders. Most of these are used in stock repurchases. In the past five years, Apple’s average annual fund repurchase was US$32 billion, Jim Suva expects that the size of Apple’s stock repurchases will also double after it is expected to increase its return on capital by US$100 billion next month.
In this report, Jim Suva believes that the stock valuation of Apple is still attractive and maintains a Buy rating on Apple's stock. Its target price for Apple’s stock remains at US$200, compared with the closing price on Tuesday. The price is 16.5% higher.