Apple Inc. (NASDAQ:AAPL): Current price $446.57
Jefferies believes Apple Inc.’s need for cash, amid capex requirements, new subsidy models, and slowing international sales, is higher than many believe. The firm estimated that Apple’s capex is likely to double in the next two years, equating to roughly an additional $10 billion per year, due to a variety of factors. Jefferies thinks an acceleration of dividends and buybacks will provide Apple with greater strategic flexibility and value to shareholders over the intermediate to long term. The firm said that Apple’s current plan is to return $45 billion to shareholders during the next three years, and that they think the company can double that to $90 billion over an extended period of time. Jefferies keeps a Hold rating on Apple, saying the company could be facing a rough two-year period.