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Apple: researcher lays out trail to 0 net cash, deems ‘transformational M&A’ unlikely

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UBS researcher Steven Milunovich weighed in Wednesday on how Apple Inc.

AAPL, +1.89%

can comparison down a $163 billion net-cash raise and grasp a idea of apropos net-cash neutral, a aim a association cited on a latest gain call. “We consider Apple leans toward buybacks with a intensity to boost a division produce closer to other vast record companies,” he wrote, adding that a probability of vast MA or a special division would be “surprising.” He sees Apple being means to grasp a net-cash neutral position by mercantile 2023 by a 5% annual rebate in share count and a produce of 3%. Apple’s division produce is 1.54%, compared with Microsoft Corp.’s

MSFT, +1.50%

produce of 1.88%. He deems other possibilities for a income unlikely. CEO Tim Cook pronounced during Apple’s shareholder assembly Tuesday that he wasn’t a “fan” of special dividends, and Apple has traditionally opted for tiny acquisitions rather than vital ones. “Transformational MA would outcome in a collision of opposite cultures and priorities, that Apple has so distant avoided,” Milunovich wrote. Apple shares are down 0.4% in Wednesday morning trade and adult 22% over a past 12 months. The Dow Jones Industrial Average

DJIA, +1.01%

has risen 20% in that time.