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BofAML raises Apple's price target to $1.1T valuation

Published 01/17/2018, 11:23 AM
© Reuters.  BofAML raises Apple's price target to $1.1T valuation
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  • Bank of America Merrill Lynch (NYSE:BAC) raises its Apple (NASDAQ:AAPL) price target from $180 to 4220 while reiterating a Buy rating. The price target is 25% above yesterday’s closing price and would represent a $1.1T market valuation.
  • ”We remain bullish on potential for cash repatriation, lower tax rates, and the potential for positive estimate revisions heading into 2019. A smoother iPhone cycle (no boom-bust) should drive increased stability in earnings, commanding a higher multiple,” writes analyst Wamsi Mohan.
  • Mohan expects Apple to repatriate $236B of its $253B in overseas cash under the 15.5% tax rate in the tax reform bill and notes that cash could go towards buybacks, dividends, or M&A.
  • Apple shares are down 0.2%.
  • Previously: Longbow downgrades Apple on lower iPhone forecast (Jan. 17)
  • Now read: Apple's iPhone Battery Replacement Could Consume Enough Cobalt To Make 26% Of EVs Sold In 2017


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