Matt Phillips blogs for The Wall Street Journal, “Whilst trolling through the love letters penned by Wall Street analysts to Steve Jobs Wednesday morning — as the fondly recalled Tuesday evening’s blowout earnings report from the tech giant — we noticed that Goldman Sachs analysts had this to say:
Extremely strong March-quarter results, multiple upcoming product cycles, and higher estimates justify Apple’s sector-high valuation. That said, we see the shares as fairly valued using the after-hours stock price and our new estimates, and our rating remains Neutral.
Phillips writes, “‘Neutral?!? Neutral?!?’ the Apple fanboys scream in outraged unison.’How dare you! The temerity! The gall! The sheer, unadulterated pig-wrong-headedness!'”
“It is indeed shocking to even run across a sell-side analyst that’s not head-over-heels in love with Apple,” Phillips writes. “According to numbers served up by Thomson Reuters, out of the analysts covering the stock 38 have ‘buys’ on it. Just three have ‘holds.’ Two are sellers.”
“Goldman downgraded Apple to “neutral” from “buy” back on Dec. 15 2008, citing weakening consumer demand,” Phillips writes. “The stock fell 3.6% that day — suggesting that some investors found the downgrade at least a little persuasive. Apple closed Dec. 15 at $94.75.”
Phillips writes, “Of course, since then Apple’s shares have moved higher, by oh, 170% or so.”
Full article here.