Apple hasn't had an analyst day since 2003. The last time one was held, it was at Apple Inc. (NASDAQ:AAPL)'s headquarters and the late CEO Steve Jobs participated in Q&A session.
However, with Apple Inc. (NASDAQ:AAPL) reaching an arguably more “mature state,” analysts from Barclays believe investors could use some guidance from the company about how its legendary business model can deliver steady returns. The research firm believe the company can make a case for mid to higher single digit revenue growth over the longterm with double-digit EPS growth – in addition to solid double-digit dividend growth. The analysts, however, do not think Apple would have to divulge company secrets – but could revert to its history and philosophies to make key points.
At any analyst day for a company of Apple Inc. (NASDAQ:AAPL)’s stature, analysts assume that the company would provide address topics like its views on product philosophy, social responsibility and recap its history of innovation.
According to Barclays report, the firm looks forward to 5 more things they’d love to hear from Tim Cook and his team at some point soon: 1) how Apple is a consistent platform company, with historical data to prove it – and how it could result in some kind of revenue stability; 2) what Apple views as its Total Addressable Market or TAM – what markets it feels it plays in and/or what are the sizes of markets it looks to create; 3) a margin philosophy that brackets a gross margin range of 35%+ – and how it can be sustainable; 4) how Apple Inc. (NASDAQ:AAPL) views cash – and how it can be used to drive dividend growth; and 5) how it views itself vs. other similar companies.
After looking at comparable companies, Apple Inc. (NASDAQ:AAPL) has the potential to improve its valuation through relative yield, perhaps the most – analysts believe that the company will come under increased pressure to use most or even all of its domestic cash for shareholder return over the next few years (less a small amount to fund tuck-in acquisitions). While they don’t believe that Apple Inc. (NASDAQ:AAPL) will have an analyst day soon, Tim Cook will be forced to address more of the issues raised in this report as the company enters a more mature phase of growth.