Goldman Sachs reiterates ‘neutral’ rating on Apple Inc.

Apple Online StoreMatt 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.

45 Comments

  1. Why isn’t the SEC investigating who posted a 7000 lot of Apple shares for the last sale of yesterdays after market session, at about $13 less than market price after earnings, to knock out the gains following a blockbuster earnings report ?

    Was it GS ?

  2. Did the GS morons not “notice” that there’s a new product in Apple’s stable of products that has not yet contributed one thin dime to their quarterly earnings?

    . . . . and it’s out-selling anything they have EVER released? H-E-L-L-O! Not to mention that one model of that product hasn’t even shipped yet, and INTERNATIONAL SALES haven’t begun ANYWHERE!

    The next two quarters (at the very, very, very least) will be astronomical for AAPL, without question. Period. Case closed.

    And these GB dolts can’t see that? No wonder they’re under such federal scrutiny, for there’s clearly something going on here that’s not kosher.

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