Analyst Ups Apple Price Target for Second Time in Two Weeks
Apple (NASDAQ:AAPL) continues to reap the benefits of its better-than-expected March quarter earnings report, strong international sales, and expanded share buyback program. In a research note issued to investors on Monday, RBC Capital Markets analyst Amit Daryanani boosted his price target on Apple shares for the second time in as many weeks, reports AppleInsider.
In the most recent research note obtained by AppleInsider, Daryanani raised his price target on Apple shares to $645 from $625. After Apple announced its fiscal 2014 second-quarter earnings on April 23, Daryanani raised his price target on the company’s shares to $625 from $590. Daryanani cited Apple’s recently announced expansion to its share buyback program as one of the primary reasons behind his price target revision.
Alongside its quarterly earnings report, Apple said it was expanding its share buyback program to $90 billion from the previously revealed $60 billion level. “We are announcing a significant increase to our capital return program,” said Apple CEO Tim Cook in a company press release. “We’re confident in Apple’s future and see tremendous value in Apple’s stock, so we’re continuing to allocate the majority of our program to share repurchases. We’re also happy to be increasing our dividend for the second time in less than two years.”
Daryanani anticipates that Apple will repurchase $44 billion in shares through December 2015, or about $6 billion worth of shares per quarter, according to AppleInsider. The size of the expanded buyback program also implied that Apple will buy a further 50 million shares at an average price of $590 per share.