Goldman Sachs Believes Apple Shares are Undervalued


Shortly after Steve Jobs’ death, the value of Apple shares reached an all-time high. After that and after several product launches by Apple, the value of the shares began to fall, reaching the lowest value in the last 52 weeks.

Goldman Sachs Believes Apple Shares are Undervalued
Goldman Sachs Believes Apple Shares are Undervalued

Along with Apple’s stock market crash, many voices have begun to be heard saying that Apple has lost its spark, that it is no longer an innovative company, that its new products are simply upgrades of existing products and other pearls of style. Of course, there are also many people who don’t give a damn about Apple after the death of Steve Jobs, as they consider that he was the only genius behind all the magic that Apple was able to create in recent years. True, Jobs was a genius and was able to sell almost anything, but we refuse to believe he was Apple’s only genius.

Among stock analysts there are some who join this alarmist trend and at this time recommend being cautious when buying Apple shares. But there are others who believe that Apple will recover from this fall and recommend buying shares. Stocks that if their calculations and forecasts are correct could be worth considerably more money in some time than they are right now.

Goldman Sachs and other analysts believe that Apple’s shares will increase in value again

Bill Shope of Goldman Sachs said on Tuesday that he still classifies AAPL as “Buy”. He also says that his forecasts are that Apple shares will cost about $660 again in some time.

David Kosting, also of Goldman, recently published a list of stocks covered by the agency that he believes have the most opportunity to rise. Apple is at the top of the list, with a 49.5% upside potential ahead of other stocks such as Halliburton, Goodyear, Wynn Resorts among others.

But Goldman are not the only ones who have this positive view of Apple. Warren Buffer said Monday that Apple should use its huge cash reserves to buy back company shares. According to him this would be like buying dollar bills for 80 cents, that is, he believes that the shares will increase in value over time.

There is no doubt that some of the comments about Apple’s downfall are too alarmist. In recent months (after Steve Jobs’ death), Apple has launched some wonderful products – products like the iPhone 5, the iPad mini, the MacBook Pro with Retina display, and the new iMac. And it continues to break all sales and revenue records on a quarter-by-quarter basis. Apple may have the best catalog in its history today and is preparing to enter new markets.

Who’s with us? Is Apple going to take off again or do you think he’ll keep falling?

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