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Tony Sacconaghi Talks Apple and Dell on CNBC

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Tony Sacconaghi Talks Apple and Dell on CNBC
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Earlier on CNBC, the Senior Analyst at Sanford Bernstein discussed his bullish take on Apple (NASDAQ: AAPL) and his doubt that the leveraged buyout of Dell (NASDAQ: DELL) would happen.

Apple

  • 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

Dell

  • 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

DateFirmActionFromTo
Apr 2016Brean CapitalMaintainsBuy
Apr 2016BarclaysMaintainsOverweight
Apr 2016CitigroupMaintainsBuy

View More Analyst Ratings for AAPL
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Posted-In: CNBC News Analyst Ratings Movers Tech Media Trading Ideas Best of Benzinga

 

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