Goldman Sachs Buys Apple for the First Time in 6 Years... Target Price $199

Global investment bank Goldman Sachs has recommended a 'buy' on Apple stock for the first time in six years.

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Michael Ng, a Goldman Sachs analyst, stated in a report on the 6th (local time) that Apple's large user base will help the company's service business growth, recommending a 'buy' rating with a target price of $199 (258,900 KRW), more than 30% higher than the closing price of $151 on the 3rd.

Analyst Ng explained, "Apple's success in the premium segment and the resulting brand loyalty have expanded its user base," adding, "This helps reduce the number of users leaving the ecosystem, lowers customer acquisition costs, and encourages customers to repeatedly purchase products."

He particularly expects the services sector to drive Apple's growth over the next five years, with significant contributions from the App Store and content subscriptions such as Apple TV and Apple Music.

This is the first time Goldman Sachs has recommended buying Apple stock since February 2017, six years ago. At that time, Apple's stock price was around $30. Afterwards, Goldman Sachs issued a 'sell' opinion in April 2020, right after the COVID-19 outbreak, then upgraded its rating to 'neutral' a year later after confirming strong performance. Despite Goldman Sachs' downgrade in investment rating, Apple's stock price currently stands at $150, five times higher than six years ago.

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