Goldman Sachs says Apple is the most undervalued stock it covers

Posted:
in AAPL Investors edited January 2014
Shares of Apple stock recently hit a 52-week low, but analysts at Goldman Sachs are still very optimistic about the company's fortunes, with one analyst saying AAPL is the most undervalued stock the firm covers.

iMacs
via Business Insider


Goldman Sachs analyst Bill Shope on Tuesday said he still rates AAPL as a "Buy." Despite the cautious outlook of other analysts, Shope sticks with a $660 price target on the stock.

Another Goldman analyst, David Kostin, recently published a list of the Goldman-covered stocks with the most upside opportunity. Apple is at the top of that list, with 49.5 percent potential upside, ahead of Halliburton, Goodyear, Wynn Resorts, and more.

Goldman aren't the only ones with a positive outlook on Apple. Berkshire Hathaway chief and respected investor Warren Buffet said on Monday that Apple should use its cash pile to buy back more stock. Doing so, Buffet said, would be like buying dollar bills for 80 cents.
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Comments

  • Reply 1 of 39
    apple ][apple ][ Posts: 8,360member


    It's a damn joke how much AAPL is undervalued at the moment.


     


    I'd like to see the list covering the most overvalued stocks. I have a pretty good guess as to what would be on top of that list.

  • Reply 2 of 39
    stupidstupid Posts: 3member
    unhuh.. Not buying it I'm afraid.

    Seems to be an abnormally high amount of quasay posative news this morning and today without much meat on any of these stories. I wonder if it has anything to do with the stock hitting a new low yesterday. People wouldn't be trying to make money now would they?
  • Reply 3 of 39
    nantosnantos Posts: 9member
    be careful about what GS says. it usually is the exact opposite of what they are doing and thinking.
  • Reply 4 of 39
    teejay2012teejay2012 Posts: 273member
    These are the guys that helped AAPL crash and burn. And then they come out with a statement like that?

    They add a new dimension to the term 'slimey analysts'.
  • Reply 5 of 39
    stupidstupid Posts: 3member
    ^ Add citigroup to that.

    Maybe the SEC should look into these "news releases". I don't imagine they would find anything they like.
  • Reply 6 of 39
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Stupid View Post

    Seems to be an abnormally high amount of quasay posative news this morning and today without much meat on any of these stories.


     


    Heaven forbid. It's not like we haven't just come off of two months of hearsay (was that what you meant?) negative news.

  • Reply 7 of 39
    monstrositymonstrosity Posts: 2,182member

    Quote:

    Originally Posted by Stupid View Post



    unhuh.. Not buying it I'm afraid.



    Seems to be an abnormally high amount of quasay posative news this morning and today without much meat on any of these stories. I wonder if it has anything to do with the stock hitting a new low yesterday. People wouldn't be trying to make money now would they?


     


    Quote:

    Originally Posted by nantos View Post



    be careful about what GS says. it usually is the exact opposite of what they are doing and thinking.


     


    Quote:

    Originally Posted by TeeJay2012 View Post



    These are the guys that helped AAPL crash and burn. And then they come out with a statement like that?



    They add a new dimension to the term 'slimey analysts'.


     


     


    I have to agree with your skepticism. Clearly AAPL is undervalued. But I suspect there's worse to come, and I don't trust Goldman for shit. 


    That didn't stop me buying on this rally, though I will likely release half of those in the next 5 minutes.

  • Reply 8 of 39
    sockrolidsockrolid Posts: 2,788member


    Originally Posted by AppleInsider View Post



    ... with one analyst saying AAPL is the most undervalued stock the firm covers.


     


    And just like that, Apple pops +$11.  Then drops back down.


    Nice little profit for some day traders out there somewhere.


     


    (Or have they gone extinct because of automated high frequency trading? http://en.wikipedia.org/wiki/High_frequency_trading)

  • Reply 9 of 39
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by SockRolid View Post


     


    And just like that, Apple pops +$11.  Then drops back down.


    Nice little profit for some day traders out there somewhere.


     


    (Or have they gone extinct because of automated high frequency trading? http://en.wikipedia.org/wiki/High_frequency_trading)



    It popped more than $11 today.


     


    The low was 420.75, then went to 435.19, for the high of the day.

  • Reply 10 of 39
    Translated: Goldman Sachs has a huge position it wants to unload to make a profit from.
  • Reply 11 of 39
    originalgoriginalg Posts: 381member

    Quote:

    Originally Posted by Apple ][ View Post


    It's a damn joke how much AAPL is undervalued at the moment.


     


    I'd like to see the list covering the most overvalued stocks. I have a pretty good guess as to what would be on top of that list.





    My guess on their list of overvalued stocks, it would also be AAPL. image


     


    Look at the P/E on a company like Amazon or even Google compared to Apple, it's ridiculous. Also it's not like Apple is making less money than before and growth is still positive.

  • Reply 12 of 39
    constable odoconstable odo Posts: 1,041member
    Apple may be their most undervalued stock but it can easily stay undervalued for the next five years if that's the case. What does any of this prove? Apple is what it is. Apple's share price has been disconnected from its fundamentals for a few years. It was those idiots and frauds like Andy Zaky who kept saying everything was going to change for Apple and its shareholders. Things were going to be different in a much better way. And so what happened? Apple is in an even bigger P/E hole than it was before.

    Face it. Apple is a poor investment. People just don't seem to learn. They get a head shot that almost knocks them out but the next day they just forget all about what happened the day before and get clocked again. Please just tell them to stay down and avoid future embarrassment. It's not helping Apple shareholders at all. Apple stood back up in the ring today only to be knocked on its ass again tomorrow. Apple is a fighter with a weak punch and even worse defense. It really doesn't even belong in the ring against Samsung. With all that cash Apple could have become a contender but now it's just a lightweight pretender that doesn't even know how to brawl. With Tim Cook as the coach, Apple will just continue to get knocked around the ring and eventually get punch drunk and its career is over.
  • Reply 13 of 39
    jd_in_sbjd_in_sb Posts: 1,482member


    A stock price is based upon the mood & fears of the investing public, not necessarily a company's fundamentals. Just because Apple's stock price recently reached an arbitrary number ($705.07) doesn't mean that is it's true value.

  • Reply 14 of 39
    rogifanrogifan Posts: 10,669member


    I saw an article on CNBC this afternoon saying innovation is the key to get investors back into Apple.  I almost spit out my drink reading it.  As if investors know the first thing about the most over used word ever. image

  • Reply 15 of 39
    rogifanrogifan Posts: 10,669member

    Quote:

    Originally Posted by Constable Odo View Post



    Apple may be their most undervalued stock but it can easily stay undervalued for the next five years if that's the case. What does any of this prove? Apple is what it is. Apple's share price has been disconnected from its fundamentals for a few years. It was those idiots and frauds like Andy Zaky who kept saying everything was going to change for Apple and its shareholders. Things were going to be different in a much better way. And so what happened? Apple is in an even bigger P/E hole than it was before.



    Face it. Apple is a poor investment. People just don't seem to learn. They get a head shot that almost knocks them out but the next day they just forget all about what happened the day before and get clocked again. Please just tell them to stay down and avoid future embarrassment. It's not helping Apple shareholders at all. Apple stood back up in the ring today only to be knocked on its ass again tomorrow. Apple is a fighter with a weak punch and even worse defense. It really doesn't even belong in the ring against Samsung. With all that cash Apple could have become a contender but now it's just a lightweight pretender that doesn't even know how to brawl. With Tim Cook as the coach, Apple will just continue to get knocked around the ring and eventually get punch drunk and its career is over.


    Don't tell me you actually believe this.

  • Reply 16 of 39
    monstrositymonstrosity Posts: 2,182member

    Quote:

    Originally Posted by Constable Odo View Post



    Apple may be their most undervalued stock but it can easily stay undervalued for the next five years if that's the case. What does any of this prove? Apple is what it is. Apple's share price has been disconnected from its fundamentals for a few years. It was those idiots and frauds like Andy Zaky who kept saying everything was going to change for Apple and its shareholders. Things were going to be different in a much better way. And so what happened? Apple is in an even bigger P/E hole than it was before.



    Face it. Apple is a poor investment. People just don't seem to learn. They get a head shot that almost knocks them out but the next day they just forget all about what happened the day before and get clocked again. Please just tell them to stay down and avoid future embarrassment. It's not helping Apple shareholders at all. Apple stood back up in the ring today only to be knocked on its ass again tomorrow. Apple is a fighter with a weak punch and even worse defense. It really doesn't even belong in the ring against Samsung. With all that cash Apple could have become a contender but now it's just a lightweight pretender that doesn't even know how to brawl. With Tim Cook as the coach, Apple will just continue to get knocked around the ring and eventually get punch drunk and its career is over.


    You crazy

  • Reply 17 of 39
    aaronjaaronj Posts: 1,595member


    APPLE IS DOOMED!


     


    Come on, someone had to say it.

  • Reply 18 of 39
    plagenplagen Posts: 151member

    Quote:

    Originally Posted by Constable Odo View Post



    Apple may be their most undervalued stock but it can easily stay undervalued for the next five years if that's the case. What does any of this prove? Apple is what it is. Apple's share price has been disconnected from its fundamentals for a few years. It was those idiots and frauds like Andy Zaky who kept saying everything was going to change for Apple and its shareholders. Things were going to be different in a much better way. And so what happened? Apple is in an even bigger P/E hole than it was before.



    Face it. Apple is a poor investment. People just don't seem to learn. They get a head shot that almost knocks them out but the next day they just forget all about what happened the day before and get clocked again. Please just tell them to stay down and avoid future embarrassment. It's not helping Apple shareholders at all. Apple stood back up in the ring today only to be knocked on its ass again tomorrow. Apple is a fighter with a weak punch and even worse defense. It really doesn't even belong in the ring against Samsung. With all that cash Apple could have become a contender but now it's just a lightweight pretender that doesn't even know how to brawl. With Tim Cook as the coach, Apple will just continue to get knocked around the ring and eventually get punch drunk and its career is over.


    Not sure about P/E but this post has the highest BS/number-of-characters ratio in the thread. Congratulations!

  • Reply 19 of 39
    jragostajragosta Posts: 10,473member


    I have to agree with your skepticism. Clearly AAPL is undervalued. But I suspect there's worse to come, and I don't trust Goldman for shit. 
    That didn't stop me buying on this rally, though I will likely release half of those in the next 5 minutes.

    I'm not sure that there's worse yet to come. Apple is trading at 7 times forward, cash adjusted earnings. They have no debt. One of their biggest problems is what to do with all the cash they're generating. Most of their markets are continuing to grow and they're gaining share (except for the last quarter when they had supply issues) in the stagnant PC market. Their price is less than half the market average in terms of PE. They're far below their peers in terms of price/book and price over EBITDA, as well.

    I just don't see how they can continue to slide. Whether you like Goldman Sachs or not, their analysis is correct. By any standard AAPL is extremely low. Warren Buffett just said the same thing.

    I really think we've hit bottom. I just hope it recovers fast enough for my April options to pay off.
  • Reply 20 of 39
    anantksundaramanantksundaram Posts: 18,814member

    Quote:

    Originally Posted by Rogifan View Post


    I saw an article on CNBC this afternoon saying innovation is the key to get investors back into Apple.  I almost spit out my drink reading it.  As if investors know the first thing about the most over used word ever. image



    Except for their Squawk Box group (and a couple of folks in the 9 AM - 11 AM slots -- e.g., Quintanilla), the rest of CNBC's lineup -- esp. the midday and afternoon crowd -- is a rot-your-brain wasteland. Total bunch of maroons.


     


    Spongebob is preferable to that crowd.

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