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Analyst: Minimal Impact Seen From Stock Options Probe

TMO Reports - Analyst: Minimal Impact Seen From Stock Options Probe

by , 12:30 PM EDT, October 5th, 2006

Piper Jaffray analyst Gene Munster on Thursday weighed in on Apple's stock options probe, noting that while the 15 impacted option grants was more than he had expected, he sees minimal financial impact. He wrote: "Apple will take a non-cash charge for options related compensation expense. In addition Apple will pay back taxes, which we estimate will be less than $50 million, which would be less than 0.6% of Apple's cash on the balance sheet."

In addition, Mr. Munster said that the elimination of "remote risk to [CEO Steve] Jobs' position at Apple" should ease investors' concerns that "the options investigation could somehow spiral out of control and lead to the end of Steve Jobs' career at Apple."

He maintained his "Outperform" rating on Apple's stock, with a US$99 price target. The latest news doesn't seem to have concerned investors too much: At 12:29 PM EST on Thursday, the company's shares were selling for $75.43, up 0.7% for the day.

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.


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