Apple Inc's (NASDAQ:AAPL, ETR:APC) latest product launches have Goldman Sachs feeling bullish, with the investment bank reiterating its ‘buy’ rating and setting a price target of $294.
That’s a 25% premium to Apple’s current share price, with Goldman citing strong revenue growth prospects fuelled by new Mac and iPad models.
Apple has unveiled an upgraded lineup of devices, including the latest MacBook Air powered by the new M4 chip, a refreshed Mac Studio, and an updated iPad Air.
The MacBook Air, Apple’s best-selling laptop, is now up to twice as fast as the M1 version and comes at a lower starting price of $999 for the 13-inch model.
Goldman believes this aggressive pricing, coupled with an industry-wide refresh cycle for personal computers, will help Apple gain market share.
The new iPad Air, featuring the M3 chip, offers nearly double the performance of the previous M1 version, reinforcing Apple’s push for more powerful yet affordable tablets.
Meanwhile, the Mac Studio, now equipped with the M4 Max and M3 Ultra chips, delivers significant performance improvements - up to 3.5 times faster than earlier models.
Goldman Sachs expects these launches to contribute to Apple’s projected revenue growth of around 6% year-on-year for its fiscal second quarter, reaching approximately $95.9 billion.
The investment bank also sees the company benefiting from its broader ecosystem, integrating artificial intelligence into its devices and enhancing its services business.
Despite some concerns about pricing pressure, particularly with the MacBook Air’s cut, Goldman believes Apple’s strong brand loyalty and continued innovation will drive demand.
Its analysts also see long-term value in Apple’s growing services division, which now contributes a significant portion of overall revenue.
The latest MacBook and iPad refreshes will begin shipping next week, and Apple will be hoping they boost sales in an increasingly competitive market.