Earlier on CNBC, the Senior Analyst at Sanford Bernstein discussed his bullish take on Apple AAPL and his doubt that the leveraged buyout of Dell DELL would happen.
Apple
-Stock is entering "growth purgatory" -When this happens, there is a tremendous turnover in shareholder base -Apple is no longer a hyper growth company; can no longer grow at 40-50% per year -Will reduce to 10-15% growth, simply due to size -A year ago, 29% percent of value funds owned Apple, now 40% own it -Holding firm with $750 price target and Outperform rating, believe that by the end of next year Apple will have $200 billion in cash Dell
-Does not believe the Dell leveraged buyout will happen -Very large bet for 1-3 principles going forward -Risky environment as the PC market goes through a lot of change -When push comes to shove, deal will not be done -Believes company will continue to use cash to buy companies that will make it more of an enterprise player Shares of Dell traded up 2.77 percent to $12.63 early Tuesday afternoon while Apple traded down 3.08 percent to $486.31.
Market News and Data brought to you by Benzinga APIs-Stock is entering "growth purgatory" -When this happens, there is a tremendous turnover in shareholder base -Apple is no longer a hyper growth company; can no longer grow at 40-50% per year -Will reduce to 10-15% growth, simply due to size -A year ago, 29% percent of value funds owned Apple, now 40% own it -Holding firm with $750 price target and Outperform rating, believe that by the end of next year Apple will have $200 billion in cash Dell
-Does not believe the Dell leveraged buyout will happen -Very large bet for 1-3 principles going forward -Risky environment as the PC market goes through a lot of change -When push comes to shove, deal will not be done -Believes company will continue to use cash to buy companies that will make it more of an enterprise player Shares of Dell traded up 2.77 percent to $12.63 early Tuesday afternoon while Apple traded down 3.08 percent to $486.31.
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