An analyst at Goldman Sachs (NYSE:GS) Group Inc rated Apple Inc (NASDAQ:AAPL) a “Buy” for the first time in nearly six years after the investment bank was mostly on the sidelines as the iPhone maker’s stock more than quadrupled in value.
In a note to clients, the Goldman analyst also provided a $199 price target on Apple over the weekend, which helped Apple bounce 3.1% to $155.72 on the Nasdaq on Monday morning.
“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,” said Goldman’s analyst Michael Ng.
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Goldman said the Cupertino, California-based iPhone giant’s massive user base will help it grow its services business.
“Apple’s success in premier hardware design and resulting brand loyalty has led to a growing installed base of users,” said Ng.
He noted that this helps the company reduce the number of users leaving the ecosystem, lowers client acquisition costs, and encourages customers to repeat purchases.
Apple was rated Neutral or Sell by Ng’s predecessor Rod Hall, who covered the company for nearly five years.
Significantly, Apple has rallied over 300% since Goldman last had a buy-equivalent recommendation in 2017.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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