- Goldman Sachs give Apple stock a Buy rating.
- Analyst Michael Ng gives AAPL $199 price target.
- Apple stock price jumps 2% at Monday open.
- 1.8 billion active devices primary factory in rating.
Apple (AAPL) stock jumped more than 2% at the open on Monday after a Goldman Sachs analyst said the mega-cap was a Buy due to its installed user base more than making up for headwinds on the product side. Shares of Apple rose 2.3% at Monday's open to trade at $154.50.
Apple stock news: $199 is new Goldman price target
Goldman analyst Michael Ng slapped Apple stock with a $199 price target, which implies that AAPL has 32% left to climb from Friday's close. Ng came to this conclusion by examining Apple's installed base of 1.8 billion active devices. His conlusion was that Apple's brand loyalty was enough to provide greater confidence in growth projections and thus meaningfully lead to a higher valuation multiple compared with competitors.
"The installed base growth, secular growth in services, and new product innovation should more than offset cyclical headwinds to product revenue (e.g., longer replacement cycles, slowing industry growth for PCs & tablets)," wrote Ng.
The second part of his thesis is that the Services segment still has a lot of growth left. Ng wrote that the majority of gross profit growth will come from Services through 2027. It will rise from 33% currently to 40% by then.
In unrelated news Apple CEO Tim Cook is still receiving postive reviews from his decision to cut his target pay for 2023. This year Tim Cook can expect target pay of $49 million instead of 2022's $84 million target. In fact, when options and other parts of his compensation were tallied, Cook took home $99 million last year. Starting this year, stock-based compensation will account for 75% of his package rather than the earlier 50%. Critics wonder if the pay cut is meant to clear the way for mass layoffs later in the year. Thus far, Apple employees have missed out on the wide-ranging job cuts that have hit the largest players in the tech sector.
Apple stock forecast
Apple stock is now trading right on resistance at $155. This level stems from experience back in October of this past year and again in the early part of 2023. A break above this price level gives bulls the option of two more higher price targets. These are $160 and $175. Both price levels are quite long-term in nature. Expect any pullback to send AAPL stock back to recent support between $143 and $144.
AAPL daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.