AAPL stock is falling in pre-market trade Thursday, down 0.67% to $97.50, after analysts at Goldman Sachs (GS) cut their price target to $124 from $136, citing lower growth expectations for the smartphone industry as well as a lower view of Apple (AAPL) average selling prices, based on expectations for a greater shift from developed to emerging markets. Goldman also reduced its AAPL fiscal 2016 EPS estimate to $8.39 from $8.40, and predicted lower iPhone unit sales to 211 million from 212 million for the whole of 2016. For full fiscal year 2017 and 2018 estimates were lowered to 231 million units from 243 million and to 223 million units from 251 million, respectively.
“Our reductions are driven by lower market growth, as well as lower ASPs on a greater shift from developed to emerging markets, which we expect will drive a higher mix of the lower-priced iPhone SE (and its successors) relative to the higher-priced iPhone 7 (and its successors),” the investment bank said [via CNBC] in a research note released this morning.
Separately, RBC Capital today kept a $120 price target and ‘Outperform’ rating on Apple shares, noting they believe the name is poised for a near-term rally within the $90 – $120 range.
In the past 52 weeks, Apple’s stock has traded between a low of $89.47 and a high of $132.97 with the 50-day MA and 200-day MA located at $98.74 and $103.28 levels, respectively. Additionally, shares of AAPL trade at a P/E ratio of 1.29 and have a Relative Strength Index (RSI) and MACD indicator of 50.88 and +3.47, respectively.
Apple currently prints a one year loss of about 23%, and a year-to-date loss of 5.38%.