Sanford C. Bernstein Analyst Doesn't Share Icahn's Views On Apple Inc.
He thinks that Apple Inc. is currently overcapitalized by $50 to $75 billion and that he is not sure that it would be good to make a tender offer at the moment and claim that the shares are dramatically undervalued. Historically speaking, the company's approach was to return cash to shareholders gradually. It is possible that larger buybacks could happen, but a large tender is unlikely, believes Sacconaghi.
The analyst is also not as optimistic as Icahn about the value of Apple Inc.. He sees the high end smart phone market as a relatively mature category and it is going to be tough after this year to find growth in the market that is not going to grow.
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