Goldman Sachs Says Apple is a Buy, But…

Mar 6, 2023

Apple (AAPL) is on the move.

At the moment, shares are up $4 to $155.05.  All after Goldman Sachs said it’s a buy, with a price target of $199 a share. “We are Buy rated on AAPL as we believe the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability and visibility,” said the analysts, as quote by Barron’s.

Recent headwinds have only made Apple far more attractive, they added.  Especially with the AAPL stock now trading at 24x forward earnings, below its 2020 to 2022 average of 27x, and last year’s 32x earnings numbers.

Other analysts are just as bullish.

Morgan Stanley, for example, has a buy rating, with a $180 price target.  “We see a catalyst-rich event path over the next 12 months that is underappreciated by investors,” said analyst Erik Woodring. “Perhaps what is most underappreciated by investors today is just how strong Apple’s underlying gross margins are when adjusting for FX headwinds, which we estimate were 46% in the December quarter and are likely to reach nearly 47% in the March quarter.”

Analysts at Jefferies are also bullish. The firm has a buy rating on the AAPL stock, with a $195 price target. “We think expectations are more conservative on macro than Apple is seeing driving opportunity for outperformance,” McNealy told investors in a note.

While we’re also bullish on Apple, long-term, we’d wait to see if it can break above triple top resistance dating back to late October.  If it fails to break through, AAPL could drop again. If it can break above resistance, we’d like to see Apple again challenge $180, near-term.

[featured sponsor]

[sponsored headlines]