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Udall: Apple Needs M&A And Growth, Not Buybacks

Udall: Apple Needs M&A And Growth, Not Buybacks

Shares of Apple Inc. (NASDAQ: AAPL) were trading nearly flat during Monday's trading session as several tech experts offered mixed feelings on the stock.

RBC Capital Market's Amit Daryanani commented in a note that Apple could "comfortably" boost its share repurchase and dividend plans by the tens of billions of dollars. However, Sean Udall, a notable tech expert, doesn't agree.

Speaking to Benzinga, Udall said that a move by Apple to increase its dividend and buyback is a "horrible idea."

"It's the definition of insanity," Udall also said. "They need to buy M&A and growth. Buying back stock is doing the same thing over and over again and expecting a different result."

Udall continued that Apple should focus on boosting its revenue growth through strategic M&A moves. He suggested that by spending $40 billion to $50 billion in M&A deals, the company could have realized a 7 percent to 10 percent hike in revenue.

Udall further argued that Apple should start with 1 to 2 "smallish" deals per quarter.

"If buybacks were the answer, Apple would be trading with a valuation premium versus a historically massive valuation discount," he concluded.

Latest Ratings for AAPL

Apr 2019Credit SuisseInitiates Coverage OnNeutral
Apr 2019Bank of AmericaReiteratesBuyBuy
Apr 2019HSBCDowngradesHoldReduce

View More Analyst Ratings for AAPL
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Posted-In: Amit Daryanani AppleAnalyst Color Long Ideas Analyst Ratings Movers Tech Trading Ideas Best of Benzinga


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