Munster: Any Companies Apple Could Buy To Immediately Inject Growth Are Too Large To Buy
Piper Jaffray's Gene Munster is considered to be one of the Street's most knowledgeable analyst that covers Apple Inc. (NASDAQ: AAPL).
Following Apple's disappointing second-quarter results, Munster discussed what M&A opportunities are available to the company.
According to the analyst, there are four areas where "it might make sense" for Apple to acquire companies in: virtual reality, automotive, components and content.
However, while the company's CEO Tim Cook may have "left the door open for larger deals," there are few large companies that make sense for Apple to acquire.
"Further, investors want Apple to buy companies as a panacea for growth in the near to medium term, but in our view the issue is that any companies that could meaningfully change Apple's growth picture over the next one to two years are probably too large to acquire," Munster wrote in a research note.
Munster added that Apple should "take chances" and acquire a company that will only have an impact after five years of being absorbed into Apple's organization.
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