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

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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

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

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

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

 

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