1 year ago
Apple's Tax Holiday, Western's Trump Risk, Per Morgan Stanley
[at Barrons.com] - Apple (AAPL) stands to benefit the most from any U.S. tax holiday on overseas cash, writes Morgan Stanley’s Katy Huberty, while disk drive maker Western Digital (WDC) could be at risk from trad policy by a Trump administration. Reflecting on Trump’s vow to offer a lower, 10% tax on any overseas cash brought back to the U.S., Huberty writes it "should be beneficial and most impactful for the mid-to-large cap names that have a significant percentage of cash held by foreign subsidiaries and are interested in making acquisitions or stepping up capital return to shareholders." Chief among them is Apple: Apple, with $216B of cash held offshore (or 37% of market cap), is the largest beneficiary and would likely pay $54B less in taxes should a repatriation holiday occur and they decide to move all their cash onshore.