Goldman Sachs has upgraded its Apple stock rating to ‘neutral’ after more than a year of labeling it ‘sell’ in the wake of the Cupertino Company’s extraordinary earnings announcement on Wednesday.
From Yahoo Finance:
After a spectacular quarter from tech giant Apple, the Goldman Sachs bear analyst hedging stocks is admitting defeat.
Reportedly, a note from GS analyst Rod Hall stated:
We are upgrading our rating from Sell to Neutral after Apple took another big hit and was up from our June revenue expectations. Our original view that the iPhone cycle would disappoint amid COVID was clearly wrong. Apple has not only done better than we expected on the iPhone over the cycle, but the Mac and iPad have also substantially exceeded our forecasts.
According to the report, Hall also noted that since adding Apple to Goldman’s America sales list last April, the stock has risen 86%, outpacing the 49% growth of the S&P 500 in the same period.
The report notes that Hall “consistently expressed concern about demand for the iPhone 12 and whether there would be a 5G upgrade supercycle,” but that the prediction “had gone south.” In fact, the iPhone 12 has proven to be one of the best iPhones in recent times.
Apple posted quarterly earnings of $ 89.58 billion above a consensus expectation of $ 77.3 billion, completely knocking out even the most optimistic analyst estimates. Revenues were driven by high demand for the iPhone, iPad, and Mac.