Goldman Sachs is finally buying into Apple as a viable addition to your investment portfolios. After six years of keeping the iPhone maker’s stock at Neutral or Sell, the investment bank has recently changed course and upgraded it to Buy.
The last time Goldman Sachs had Apple at a Buy rating was in 2017. Since then, the company’s shares have seen a 300% increase in value, but the bank has remained mainly cautious under analyst Rod Hall. As of recently, the coverage has been turned over to analyst Michael Ng, who didn’t hesitate to shake things up from the get-go.
In a note to clients shared on Monday, Ng said that he sees a bright future for Apple due to its large customer base that will help the company grow and maintain its service business.
“The durability of Apple’s installed base and the resulting revenue growth visibility from attaching more services and products is what underpins the recurring revenue — or Apple-as-a-Service — opportunity,” Ng said.
Ng has set the price target for Apple at $199 per share, which is more bullish compared to the average of $169.61. The company’s stock is currently sitting at $154.98 per share, a roughly 24% increase year-to-date.