Question

Extra Credit Assignment: Create a two-page research report for Apple (AAPL), which is due on Monday 08/17/20. The paper should include the following components: • Our summary recommendation (eg Buy, Hold, Sell) Our company outlooks • Our industry outlooks Our valuation for the company (total company value as well as target share price value) • Anything else we deem relevant The professor is interested in how well we organize our report and how well we articulate our assumptions versus any right or wrong answer. In other words, we are welcome to form any recommendation, but he is most interested in how well we support it.

Hello!

I'm lookong for answers and guidance on how to research, how to structure the paper, what specific information to include, etc.

Answer 1

The sections of the report are clear. They should be as per the five components.

Our summary recommendation (Buy, Hold, Sell)

• Even though this section appears first, please write this section at the end, after you have written the rest of the report. It should be two lines......Our receommendation is to buy this stock based on sound fundamentals and strong potential the company has displayed. Our recoemmnedation is backed by detailed analysis presented subsequently in the report.

Our Company Outlook

• Research for any any quartely outlook the company might have given in the recent investor call.
• Any projections about the company you come across
• Show that the company has maintained a sound quarter on quarter growth in last say 3 - 4 quarters.
• Definitely mention: Due to Covid the world is going online. From entertainement to academics, from personal life to professional life, the need for Apple products is going to be robust, leadint o strong results in the near future.
• Length around one third of a page

Industry Outlook

• Smart products are going to display a robust demand driven by internet penetration and rising smartphone penetration in developing and under developed nations.
• World going online due to Covid.....
• Rising use of smartphone to order across the developing and under developed nations
• DO some secondary research and add couple of lines

Our valuation

• Choose to value the firm using DCF, here you may have to develop projections.
• Value the firm using DDM and relative valuation
• Come up with a share price, do come up with some calculations here. Please don't leave this blank. You can look into any of the equity research report. Search for equity research report on Apple Inc on google. That will help. Please don't worry about technical details, as your prof. is not so much worried about the numbers.

Anything relevant

• One line - The capital markets across the globe is facing turmoil in the short term due to Covid - 19. However, we believe that this turmoil is short lived. In the longer run, the markets should stabilize and remain robust. Hence, our recommendations are from a long term perspective.

I am sure you will be able to pull the report together.