Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Scott Nations’ NationsShares Set Apple Inc. (AAPL) Stock Price Target @ $155?

Apple Inc. (NASDAQ:AAPL) closed on Tuesday breaking another record, as it became the first US company to break the $700 billion Market Cap valuation. This is a tremendous achievement from Apple Inc. (NASDAQ:AAPL)’s perspective. Many analysts and investors have kept pushing their target price for Apple Inc. (NASDAQ:AAPL) stock up. Scott Nations, CIO and President at NationsShares talked on CNBC about his view on Apple Inc. (NASDAQ:AAPL) stock and reasons behind his price target of $155.

Apple, is AAPL a good stock to buy, Huawei, Xiaomi, high-end,

“[…] Target is $155 based on not only accommodation of free cash flow but also the fact that we now expect even more buybacks. We expect the company to return more money to shareholders and largely that’s going to be a functional effect. The company can essentially borrow money for free by issuing Swiss bonds and they are going to do so to return money to shareholders,” Nations said.

Nations said that the price target set by his firm for Apple Inc. (NASDAQ:AAPL) is $155 and he feels that Apple Inc. (NASDAQ:AAPL) might do a lot of share buybacks and return a lot of cash to shareholders, which might push the stock up. He added that the company can borrow money by issuing Swiss bonds and return money to shareholders.

He said that many might wonder why a company like Apple Inc. (NASDAQ:AAPL) with $175 billion in hand might have to borrow money to return to shareholders. He added that about 85% of their cash is offshore to US and the company had to pay huge sum in tax in order to return money to shareholders. He feels that borrowing money from Switzerland at lower interest makes it easy for Apple Inc. (NASDAQ:AAPL).

He said that with the combination of buybacks and free cash flow Apple Inc. (NASDAQ:AAPL) might reach $155.

Apple Inc. (NASDAQ:AAPL) stock price keeps going up for the last 18 months, and Nations feels that looking at the trend one might hesitate to get into the stock, but he said that the person needs a different trading strategy to get into this stock.

He advised individual investors who are trying to get into this stock saying that instead of looking to get 500 stock and waiting for the stock to dip to get that, the investors can get 100 stocks at the moment and cash in the uptrend.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.