Apple (NASDAQ:AAPL) shares nudged higher in pre-market as the globe's most valuable firm was on the end of an upgrade from Bank of America Merrill Lynch, which reckons the group will thrive on President Donald Trump's tax reforms.
"We remain bullish on potential for cash repatriation, lower tax rates, and the potential for positive estimate revisions heading into 2019," analyst Wamsi Mohan said on Wednesday.
READ: Apple prepares to hand over iCloud operations in China to Chinese firm
He reckons the tech titan has more than US$253bn in overseas cash and calculated that US$236bn is available to be repatriated at the new 15.5% tax rate under the tax reform bill.
Apple gets most bullish forecast yet after BofA predicts surge to $1.1 trillion value in 12 months https://t.co/LUlMx2rrne
— CNBC Tech (@CNBCtech) January 17, 2018
After paying out the tax, Apple would have US$200bn of cash back on-shore in the US potentially, which it could use for buybacks, dividends or acquisitions, he suggested.
The analyst hiked the price target by US$40 to US$220 from US$180 a share previously, and repeated a 'buy' stance.
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The broker also reckons a smoother iPhone cycle should drive increased stability in the tech titan's earnings, commanding a higher multiple.
Conversely, Longbow Research cut its stance on Apple to 'neutral' from 'buy' on Wednesday, predicting the company will ship fewer iPhones than expected in fiscal 2018.
Apple shares nudged 0.09% higher to US$176.35.