AAPL Stock Price Predictions: The Case for Apple Hitting $199
Apple (NASDAQ:AAPL) stock price predictions are flying today after investing banking giant Goldman Sachs claimed the tech monolith has more than 30% upside. Indeed, Goldman set a $199 price target on Apple stock, leaving scores of investors hu…
Apple (NASDAQ:AAPL) stock price predictions are flying today after investing banking giant Goldman Sachs claimed the tech monolith has more than 30% upside. Indeed, Goldman set a $199 price target on Apple stock, leaving scores of investors hungry for the iPhone maker.
What’s going on with AAPL lately?
Well, Goldman analysts surprised investors with strong projections of an Apple comeback. Indeed with a “buy” rating on a $199 price target, Goldman believes Steve Jobs’ brainchild has room to grow upward of 32% from Friday’s close.
The report came as a surprise to many analysts, given speculation over revenue headwinds hitting the tech sector. Indeed, Apple sales dipped 5% in Q4 of 2022, its first revenue decline since the pandemic. According to Goldman, however, Apple’s strengths lies in the strength of its product cohesion.
“We are Buy rated on AAPL as we believe the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability and visibility,” Goldman analysts said in a note Sunday.
Despite Goldman’s optimism, Apple Chief Executive Tim Cook pointed out several headwinds following the last earnings report. The company continues to fight fluctuating currency exchange rates, Covid-19 supply slowdowns and a tightening macroeconomic environment.
Investors quickly priced in Goldman’s bullish Apple energy — AAPL is up almost 3% heading into the afternoon.
What do other analysts think of Apple in the wake of Goldman’s glowing advocation?
AAPL Stock Price Predictions
Fellow investment bank Morgan Stanley shares a similar view on Apple.
“We see a catalyst-rich event path over the next 12 months that is underappreciated by investors,” said Morgan analyst Erik Woodring last Friday. “Perhaps what is most underappreciated by investors today is just how strong Apple’s underlying gross margins are when adjusting for FX headwinds, which we estimate were 46% in the December quarter and are likely to reach nearly 47% in the March quarter.”
Woodring maintained his “buy” rating and raised his price target to $180 from $175.
CNN Business also has high expectations for Apple stock going forward. Among CNN’s 40 polled analysts, 25 gave the tech company a “buy” rating, six analysts believe the company will “outperform,” seven analysts gave Apple a “hold” rating, and just two analysts recommended selling AAPL.
Currently, CNN’s 12-month forecast has Apple climbing to $173 per share. While this is well below some other aforementioned price targets, it still implies 11.2% upside.
Finally, Jefferies, joins its fellow investment banks in singing Apple’s praises. Earlier this month, analyst Kyle McNealy gave AAPL stock a “buy” rating, on a $195 price target. As per a note to clients, McNealy believes Apple is relatively protected from global economic concerns, and recent site traffic to Apple’s home page is “running well ahead of consensus.”
“We think expectations are more conservative on macro than Apple is seeing driving opportunity for outperformance,” McNealy told investors in a note.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.
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