Goldman Sachs Says Despite Disappointment, Apple (AAPL) Not Broken
Goldman Sachs cut its price target on Apple (NASDAQ: AAPL) from $760 to $660 but maintained its Conviction Buy List rating following Q1 results.
Commenting on the change in guidance, Goldman's Bill Shope notes: "The problem, and the key disappointment in the call, was that management made it pretty clear that
it was moving towards providing more realistic guidance. In this case, the guidance was a definitive disappointment."
That said, Shope said the Apple story is "not broken." "We are maintaining our CL-Buy due to our optimism that new products in the coming months will reinvigorate new user growth, with a sticky installed base serving as a baseline for valuation support."
The firm lowered FY2013-FY2015 revenue estimates by 2-6% and our EPS estimates by 6-14%.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $514.01 yesterday, with a 52 week range of $419.55-$705.07.
Commenting on the change in guidance, Goldman's Bill Shope notes: "The problem, and the key disappointment in the call, was that management made it pretty clear that
it was moving towards providing more realistic guidance. In this case, the guidance was a definitive disappointment."
That said, Shope said the Apple story is "not broken." "We are maintaining our CL-Buy due to our optimism that new products in the coming months will reinvigorate new user growth, with a sticky installed base serving as a baseline for valuation support."
The firm lowered FY2013-FY2015 revenue estimates by 2-6% and our EPS estimates by 6-14%.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $514.01 yesterday, with a 52 week range of $419.55-$705.07.