Analyst Actions: Goldman Sachs - Apple 2Q13 Earnings Preview 04/17 02:56 PM
02:56 PM EDT, 04/17/2013 (MidnightTrader) -- Goldman Sachs (GS:$140.028,0$-4.072,0-2.83%) put out a prescient preview of Apple's (AAPL:$400.872,0$-25.368,0-5.95%) earnings, saying the company could lose momentum. Shares of AAPL are down 5.4% to $403.15 in afternoon trade. The company will be reporting next Tuesday, April 23.
According to GS, "while we still think many of Apple's (AAPL:$400.872,0$-25.368,0-5.95%) current challenges can be remedied with the upcoming product cycles in the second half of this year, we believe the company's near-term momentum could further weaken before these new products come to market. This is likely to manifest itself with below-consensus earnings guidance. While there has been some hope that Apple (AAPL:$400.872,0$-25.368,0-5.95%) will announce its new capital allocation plan during its earnings call, we believe it is more likely that Apple (AAPL:$400.872,0$-25.368,0-5.95%) will make this announcement on a separate date, with a separate conference call."
GS maintains its buy rating and target price of $575 based on 13x EPS.
GS downgrades normally imply a screaming Buy. GS like most other brokers have lost all credibility as they speak from both sides of their mouth. These reviews are meaningless and released after the fact. If they had any weight and value whatsover, GS should have predicted what they just stated 6 months ago, but, they failed as then they were bullish Apple at $675. Now they are predicting for the second half? do you trust them? I do not. Remember GS shorted Apple when they sold those bond instruments tied to Apple performance same as those just recently issued by RBS Bank in Scotland. All News media printed stories are paid as Ads by these hedge funds, the days of the of old Wall Street Business Journalism are over since Murdoch assumed the paper. Sad Reality now we not only have to sort business risks to determine fair pricing but also manipulation and for that you can toss a coin and it becomes a gamble.
Sentiment: Strong Sell