Goldman slashes Apple price target by $100
MADRID (MarketWatch) — Apple Inc.’s 12-month price target was cut to 0 from 0 a share on Friday by Goldman Sachs. Apple shares suffered their worst day in four years on Thursday, sinking 12% to around 0 in the wake of disappointing results a day prior. “Apple’s guidance was essentially what we expected from the typically conservative management team. 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.” The iPhone product cycle hasn’t been able to deliver the upside Apple investors are accustomed to, and post-holiday demand for the product also disappointed, the bank said. Goldman also cut its fiscal year 2013-2015 revenue estimates by 2% to 6% and earnings per share estimates by 6% to 14%, but kept Apple on its conviction-buy list, on “optimism that new products in the coming months will invigorate new user growth.” Key risks include delayed product cycles, supply chain problems, product price erosion and a slower pace of product innovation, Goldman said.
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