Goldman cuts Apple's stock target citing 'slower pace of product innovation,' still rates it 'buy'

Goldman cuts Apple's stock target citing 'slower pace of product innovation,' still rates it 'buy'
The almighty Goldman Sachs is the latest in a string of Wall Street shops that cut their Apple stock price targets after a disappointing forecast by Cupertino for the current quarter.

Of course, at these deflated P/E ratios Apple is still a tasty morsel for portfolio managers, so Goldman keeps its "buy" rating here, but evidently it's the pace of growth that the investment bank thinks will eventually take Apple to the stature of your average blue chip stock going forward.

While Goldman defends Apple's addition to its own Conviction List of stocks with "buy" rating back in 2010, citing how the iPhone maker outperformed the S&P by a large margin in the period, it also warns about some headwinds for the show that Tim Cook currently runs:


Investment shop talk aside, Goldman Sachs is a bit hesitant to place a higher stock price target on Apple due to what it apparently sees as structural issues that need to be resolved, not temporary blips on the management radar: “delayed product cycles, supply chain difficulties, product price erosion, and a slower pace of product innovation." 

via BGR & CNNMoney

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10 Comments

1. Abbath

Posts: 99; Member since: Sep 16, 2012

...its surprisingly quiet in here o_O

5. bubbadoes

Posts: 1225; Member since: May 03, 2012

They have run out of answers..They know the iphone5s will not be anything more than the current model which is not in demand nowhere.

2. Aeires unregistered

Strange to read that one of the problems is supply chain difficulties. Jobs put Cook in charge of the supply chain, it was his expertise. Now he's running the company and they have problems in that area, one can only think it has a lot to do with cutting off Samsung as a component supplier.

3. TechBizJP08

Posts: 495; Member since: Mar 25, 2013

Maybe nobody wants to talk about this stuff. fanboys left the building. LOL

4. -box-

Posts: 3991; Member since: Jan 04, 2012

I'm surprised they still rate it.in the $500s, but I guess they have to make it tempting for potential buyers. I still see it in the $300s or lower, IMHO

6. jsjr76

Posts: 24; Member since: Sep 28, 2010

Hey everybody, not to be a jerk, but read a book on how stocks work. The price can be inflated to any price speculators and analysts want (within reason, the stock has to be able to be resold). Apple simply got overvalued and a lot has to do with their P/E ratio (price to earnings and over exuberant Apple lovers). No reason to hate, no reason to trash talk. This isn't the first time in history this has happened by a long shot ( remember what les to 1929???). Facebook is a prime example. Granted I agree with anyone that Tim Cook isn't a visionary genius like Mr Jobs, and maybe the flavor has gotten a little stale, but this is simply what happens in the stock market.

7. Timmehor

Posts: 599; Member since: Mar 09, 2013

As soon as Apple slowed its pace of innovation their stocks have decreased. Lets see some innovation Apple!

8. Pings

Posts: 304; Member since: Dec 19, 2008

Apple! Innovation? LMAO!!!! More like Apple ripping someone's idea off and then suing them for it...

9. Timmehor

Posts: 599; Member since: Mar 09, 2013

Lol, you can't do that. When someone in the tech world make an idea, they patent it. Apple can't sue other peoples patents, lol.

10. GadgetsMcGoo

Posts: 168; Member since: Mar 15, 2013

This is it. Apple no longer have Jobs to tell adherents what to buy and Cook doesn't have the balls or influence over them to do the same.

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