As Apple gets pressured to make deal, an analyst reminds them of Steve Jobs’ words

Steve Jobs

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Steve Jobs

Wall Street is buzzing over which companies Apple may buy with its massive cash holdings. But UBS analyst Steven Milunovich used the words of its founder Steve Jobs to remind the company (and his peers on the street) that the innovative tech company should only make a deal that betters its customers and not just greedy shareholders.

Wrote Milunovich in a note Tuesday: “Steve Jobs warned: ‘Companies forget what it means to make great products … they really have no feeling in their heart about wanting to really help the customers.'”

“We think Apple is likely to only make an acquisition that results in a better product and customer experience, not to protect financial results,” the analyst added.

Just last week Citigroup put out a report speculating that Apple may buy Netflix, Disney and even Telsa with its $256.8 billion cash hoard.

But Milunovich isn’t buying it.

Instead, the analyst predicted Apple will acquire firms which will allow the company to “leapfrog” its technology capability in areas such as transportation, augmented reality, health, home automation and content.

“Our view is that the probability of mega-mergers is low as it should be … ‘Think Different’ means Apple [is] likely to do the unexpected,” he wrote.

Milunovich reiterated his buy rating and $165 price target for Apple, representing 8 percent upside from Monday’s close.

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