Advisers, analysts are still big on Apple after Steve Jobs' death

The death of Apple Inc. co-founder Steve Jobs isn't being viewed by the financial markets as a turning point for the company, according to financial advisers and market watchers
OCT 09, 2011
The death of Apple Inc. co-founder Steve Jobs isn't being viewed by the financial markets as a turning point for the company, according to financial advisers and market watchers. “The death of Steve Jobs is a true tragedy when you consider the impact that he has had, but in terms of Apple stock, it has not altered our investment strategy,” said Clinton Struthers, owner of Struthers Financial Services, a $100 million advisory firm. “He was incredibly constructive, and you see so little of that type of entrepreneurial influence anymore. But as a company, the creative spirit is still there, and Apple will continue to be strong,” Mr. Struthers said.

QUESTION OF CONFIDENCE

“The real issue of the impact [of Mr. Jobs' death] will be the investor confidence in Apple's management,” said Harold Evensky, president and principal of Evensky & Katz LLC, a $700 million advisory firm. “Apple is going to continue to be a great company, and I don't think one person did everything there, but it does create questions.” Mr. Jobs, who co-founded Apple in 1976, announced his resignation as chief executive of the company Aug. 24 but stayed on as chairman. He was replaced as chief executive by chief operating officer Tim Cook, who has received strong support from the financial analyst community. “We believe Tim Cook is well-qualified for his new role as CEO and has at his disposal a deep and talented executive team in the areas of supply chain management, hardware/software design and product marketing,” said Michael Walkley, a technology analyst at Canaccord Genuity Corp.

STRONG DEMAND

“We continue to anticipate strong earnings growth for Apple over the next several years, with very strong demand and relatively low global market penetration for the iPhone, iPad and Mac products,” he said. “We reiterate our "buy' rating and $545 price target; Apple remains a top pick.” Shaw Wu, an analyst and Sterne Agee & Leach Inc., demonstrated industry support for the company by saying: “We are buyers on potential weaknesses in Apple shares.” In the near term, “the stock may remain volatile as Tim Cook gains confidence from investors,” he said. Sterne Agee maintains its “buy” rating on the stock as well as its $500 price target. “We will continue to believe that Apple is positioned to outperform in this tough macroeconomic environment with its defendable strategic and structural advantages and its vertical integration,” Mr. Wu said. Email Jeff Benjamin at [email protected]

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.