Twelve months ago its target for Apple was $163 a share. Now it’s $124.
How quickly these Apple analysts lose faith.
Simona Jankowski was positively giddy about Apple’s prospects when she took over Bill Shope’s old seat at Goldman Sachs last fall. Buying the Apple-as-service theme, she stuck to Shope’s 12-month price target of $163 a share and did him one better, putting Apple on Goldman’s coveted “Conviction Buy” list.
By mid-January her faith had been shaken somewhat by iPhone supply chain rumors. Jankowski still saw Apple as a “compelling” buy, but anticipating weak Q2 guidance from Tim Cook, she lowered her price target from $163 to $155.
I must have missed a trick, because when she cut her price target to $124 on Wednesday—citing slowing worldwide smartphone sales—it was from a previous target of $135. For reasons unexplained, neither price appeared in the disclosure section of Wednesday’s note. (See below.)
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For Goldman Sachs to draw back from Apple is a big deal, given how deep its tentacles reach into the company’s finances. Not only is it a major shareholder (long $5 billion worth as of March 31), but it has a hand in nearly every deal Apple does.
From that same disclosure section:
- Goldman Sachs has received compensation for investment banking services in the past 12 months: Apple Inc.
- Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: Apple Inc.
- Goldman Sachs had an investment banking services client relationship during the past 12 months with: Apple Inc.
- Goldman Sachs had a non-investment banking securities-related services client relationship during the past 12 months with: Apple Inc.
- Goldman Sachs had a non-securities services client relationship during the past 12 months with: Apple Inc.
- Goldman Sachs has managed or co-managed a public or Rule 144A offering in the past 12 months: Apple Inc.
- Goldman Sachs makes a market in the securities or derivatives thereof: Apple Inc.
- Goldman Sachs is a specialist in the relevant securities and will at any given time have an inventory position, “long” or “short,” and may be on the opposite side of orders executed on the relevant exchange: Apple Inc.
News services at the opening bell today were attributing the drop in Apple’s share price to Goldman’s note.