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Apple shares soar more than 3% as Goldman Sachs raises ‘Buy’ target

Goldman Sachs’ “buy” recommendation on Apple Inc shares has boosted the company’s stock, which soared more than 3% on Monday (March 6). The investment bank set a new price target of $199 per share, stating that high brand loyalty among consumers will help to increase Apple’s average revenue per user (ARPU) in the coming years. The analysts also expect that the growth in services will offset slowing hardware sales in the near term.

Goldman Sachs predicts that Apple’s Services business will account for 40% of gross profit by 2027, compared to 33% in 2021. The increase will be driven by iCloud+ sales, improved ad revenue, and increased subscriptions to Apple TV+, Apple Arcade, and Apple Fitness+. Despite the slowdown in hardware sales, Goldman Sachs believes that Apple’s strong customer base and brand power will continue to drive revenue growth in the long term.

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