Barclays Capital analyst Ben Reitzes today reiterates an Overweight rating on Apple (AAPL), while writing that the company’s board of directors “faces an interesting decision over the next year regardings its growing cash hoard,” currently at $81 billion.
Reflecting on the recent promotion of board member�Arthur Levinson to the role of non-executive chairman of the board, and the appointment of Walt Disney (DIS) CEO Bob Iger to the board, Reitzes wonders if those new names might prompt some further discussion of a change in Apple’s policy of capital allocation and capital structure:
We believe Apple has the ability to easily pay a dividend with a significant yield along with the ability to grow it over time. Furthermore, we believe consistent buybacks over time would be a better option than an accelerated buyback or a special dividend (Iger has shown a propensity for consistent buybacks at Disney). We believe that Apple’s Board could look at its cash strategy a bit differently over the course of the next year.
Apple shares today are down $8.05, or 2%, at $368.46.
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