Live on Bloomberg TV

00:00This share price which just continues to keep rising despite a sense that perhaps it's getting a bit keenly priced how much more upside do you see for Apple stock . So right now we're pretty comfortable. We raise our price target to three three hundred fifty eight dollars. You know as the positive guidance gives you a little bit more momentum with the share buyback. And the nice thing is with these results you get three months closer to 5G coming out you know planned later this fall. And really that works. We see that we're on the forefront of a major upgrade cycle in 5G and not just a one time impact. I mean this should be a long sustained super cycle that could really change the face of you know of the iPhone business from either an average selling price perspective potentially a quick and upgrade cycle or you know a lower holding period of the phones. So it really we're positive especially as additional spectrum gets opened up and we really see it as a long slow sustained cycle. Robert I want to come and take a look at a chart here that I'm showing inside my terminal . Basically you know the story it's cash minus debt outstanding which gives you net cash of still more than one hundred and sixteen billion dollars. What is the best use of cash for this company at this point. We expect him to continue buying back their shares. I mean you know we see them on pace to buyback 70 80 billion dollars a year means a Fortune 100 company in buybacks every single year. We expect that to continue. Know acquisitions could occur. But really buying back your own stock when you're not sure what else to do with it is a very good problem to have. And it gives you sort of an industry leading market leading buyback activity which really is going to be helpful for their EPW going forward. And it takes off about a turn and a half of our price target. Sorry our P E multiple . You can try knock down about a turn a half when you factor in the buyback potential .

No schedule data available.

'Positive' on Apple, RBC Capital's Muller Says

Robert Muller, analyst at RBC Capital Markets, talks about Apple Inc.'s outlook. Apple shares jumped to a record high Wednesday after reporting holiday-quarter revenue that beat Wall Street expectations on rebounding iPhone demand and surging sales of wearable devices. (Source: Bloomberg)

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips