Is Apple Grossly Undervalued?
Apple (NASDAQ:AAPL) cut its run of four straight days of losses on Tuesday by finally finishing in the green at $457, but its precipitous fall over the last four months has left investors in grave doubts about the company’s future. The research wing of Goldman Sachs clearly holds no such concern. The firm has released a list of stocks with the greatest upside potential before they reach the price target assigned to them, and Apple tops the list.
According to Goldman, Apple is on the rise again after falling from just above $700 in September, and will eventually climb back up to around $660 a share. That predicted price is effectively 45 percent higher than the January 31 closing price Goldman used in its report and 44 percent above Tuesday’s close.
Last month, after Apple reported first-quarter earnings that showed a slowed growth rate, Goldman technology analyst Bill Shope cut his price target on the company to $660 from $760, though he kept his Buy rating. Shope said then that the results were “a tough setback, but the story [was] not broken.”