Goldman Sachs Cuts Apple Price Target, Sees Stock Plunging to $82 if Deeper Recession

Goldman Sachs Cuts Apple Price Target, Sees Stock Plunging to $82 if Deeper Recession

Apple (AAPL) shares are at great risk of a major pullback in case the economic slowdown proves to be greater-than-expected, Goldman Sachs (NYSE:GS) analysts told clients.

Analyst Rod Hall sees a downside risk of 42% for Apple shares (NASDAQ:AAPL) if the bear-case scenario is materialized.

His new base-case scenario has Apple shares trading at $130.00 per share, which is a new price target (down from the prior $157.00). The lowered price target reflects decreased revenue forecasts by ~2% in both FY23 and FY24.

In our Base case forecast for Apple, we model a revenue CAGR of 10% from CY19A - CY23E which we note is an acceleration from the 3% growth the company delivered between CY15A - CY19A. We model the companys EBIT margin and EPS to expand to 28.1% and $5.81 respectively in CY23 from 24.7% and $3.17 in CY19 Our Bear case revenue and EPS estimates imply the potential for 22% and 33% downside risk vs. consensus, respectively, Hall wrote.