Nomura: Apple expected to raise total cash return target

Nomura Equity Research on Friday issued a report on Apple Inc

ahead of its April 27th results announcement. Currently Nomura rates Apple as Neutral with a $129 price target. Stuart Jeffery, an analyst at Nomura, wrote, "We expect Apple to raise its total cash return target through to end CY2015 from $130 billion to $150 billion and to give a $200 billion target for end CY2016E. We also see scope for Apple to raise its dividend to a 30 percent payout ratio,which would give $0.67 of quarterly DPS and a yield of 2.1 percent." Nomura believes that Apple could could return as much as $200 billion through buybacks in 2015 through to 2017, while keeping gross debt below tax adjusted overseas cash. Apple's strong overseas cash balances should help to cover these share buybacks. As demand for Apple's products, especially the iPhone and Apple Watch, increases in overseas markets the company should have a greater cash balance to execute their targets. Currently Apple, Inc. is trading at $126.26, down 0.24 percent.