Editor’s note: This article was first published in April 2013, ahead of Apple’s results of 23 April 2013; the share price and price targets it cites are pre-split figures, as Apple has since split its shares 7-for-1 (2014) and 4-for-1 (2020).
Apple will report its results on 23 April, and for Goldman Sachs this is a clear buying opportunity, since the market is pricing in (or has already priced in) poor results. There may still be investors hoping for better-than-expected figures, although Goldman Sachs warns that this will not happen. So, after the results, we would have two scenarios:
The first would be that there is not much selling left to do, and if the results are within the bad numbers we expect, it could mark the end of Apple’s punishment. If, on the other hand, the stock falls after the results, Goldman recommends buying without hesitation, since it considers Apple one of the cheapest stocks on the market.
Goldman Sachs lowered its price target for Apple from 660 to 575 dollars, although at the current share price (423 dollars), that means upside potential of more than 35% over the next 12 months, as the bank considers that the punishment the stock has taken has been excessive.
See also: Warren Buffett: buying Apple shares now is like buying 1-dollar bills for 80 cents
Featured image: Brett Jordan, CC BY 2.0, via Wikimedia Commons.
