Tony Sacconaghi Talks Apple and Dell on CNBC
- Stock is entering "growth purgatory"
- When this happens, there is a tremendous turnover in shareholder base
- Apple is no longer a hyper growth company; can no longer grow at 40-50% per year
- Will reduce to 10-15% growth, simply due to size
- A year ago, 29% percent of value funds owned Apple, now 40% own it
- Holding firm with $750 price target and Outperform rating, believe that by the end of next year Apple will have $200 billion in cash
- Does not believe the Dell leveraged buyout will happen
- Very large bet for 1-3 principles going forward
- Risky environment as the PC market goes through a lot of change
- When push comes to shove, deal will not be done
- Believes company will continue to use cash to buy companies that will make it more of an enterprise player
Shares of Dell traded up 2.77 percent to $12.63 early Tuesday afternoon while Apple traded down 3.08 percent to $486.31.
Latest Ratings for AAPL
|Aug 2016||RBC Capital||Maintains||Outperform|
|Jul 2016||Hilliard Lyons||Upgrades||Long-term Buy||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.