Apple Inc. (NASDAQ:AAPL) must do some work in order to gain back the confidence of investors, and analysts at Barclays PLC (NYSE:BCS) (LON:BARC) say the company must provide a little more information about what it’s up to. I know what you’re thinking: fat chance of that happening, right?
Nonetheless, in a report issued to investors this morning, Barclays PLC (NYSE:BCS) (LON:BARC) analysts said they “believe it is very important for management to hone its message—and take control of the narrative.” They point out that investors already know Apple Inc. (NASDAQ:AAPL) provides high quality, innovative products, but they need to know more about what the company is doing.
The analysts actually predict that over the next year, Apple will begin to shed the secrecy it has been known for and start to offer more clarity to investors in terms of what products it’s working on. In their view, Apple Inc. (NASDAQ:AAPL) must become more willing to share more details about margin sustainability and maybe even its long-term goals.
They said these bits of information would offer investors some insight about how Apple feels about its earnings power. In addition, they’re looking for more information about Apple’s cash return policy and openness about phablets and the company’s position in China.
Barclays analysts said they would also like to see Apple Inc. (NASDAQ:AAPL) refine its retail operations and find a new leader while also giving “a more clear explanation of its TV strategy,” details about how it’s handling production problems and more information about its long term plans to expand in the enterprise sector.
Barclays PLC (NYSE:BCS) (LON:BARC) analysts are leaving their rating on shares of Apple Inc. (NASDAQ:AAPL) as Overweight and keeping their price target at $530 per share. They said they rated the stock as Overweight because they believe the company’s valuation is “attractive” and that the stock will keep benefiting from the expansion of iPhone and iPad sales as well as products that haven’t been announced yet.
“Despite more risks, we believe Apple is a platform company that can still innovate and disrupt profit pools,” the analysts wrote.
They also believe that Apple Inc. (NASDAQ:AAPL) will push its June quarter guidance below consensus on next week’s earning call because of revenue and gross margins.
As of the moment of this writing, shares of Apple were up 1.21 percent on the day’s opening price.