Skip to main content

Market Overview

Sacconaghi: Apple's Cash Flow Makes It 'Very, Very Discounted'


Apple Inc. (NASDAQ: AAPL) had the highest number of "Android switchers" ever in its December quarter, Bernstein analyst Toni Sacconaghi told CNBC on Wednesday afternoon. Sacconaghi kept his Outperform rating on the stock with a price target of $135 after the company missed revenue and product shipment expectations on Tuesday night.

According to the analyst, the simple facts that Android users continue to ditch the operating system for iOS and average iPhone prices keep rising indicate "that's not a broken business."

"What we have is an extremely difficult comparison," Sacconaghi said, and investors "need that perspective."

The analyst previously wrote on January 11 that while Apple's P/E is near its historic low that occured in 2013 amid a declining gross margin environment, he doesn't believe a similar scenario will unfold in 2016.

He also talked about Apple's cash level. On a cash basis, Apple is trading at about 6 times its cash flow -- the market's nearly double that. "A flat free cash flow going forward would imply about a $135 share price...if you look at cash flow and the cash balance, it's a very, very discounted stock."

Apple shares are stuck in the $94 to $95 range on Wednesday afternoon.

Latest Ratings for AAPL

Apr 2021Morgan StanleyMaintainsOverweight
Mar 2021UBSUpgradesNeutralBuy
Mar 2021Evercore ISI GroupMaintainsOutperform

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Apple BernsteinAnalyst Color Long Ideas News Analyst Ratings Tech Media Trading Ideas

Latest Ratings

OSPNSidoti & Co.Upgrades39.0
PLTSidoti & Co.Upgrades48.0
LRCXArgus ResearchMaintains725.0
ROSTLoop CapitalMaintains145.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at