Delta’s unpredictable variant seems to be wreaking havoc on the financial modeling skills of the team covering Apple (AAPL) at Goldman Sachs.
“We believe that iPhone revenue growth during the fourth quarter of the calendar will be a challenge for Apple, but we continue to mark a low level of confidence in our ability to predict demand given the complex interaction of issues such as the Delta variant. , supply shortages and the end of the stimulus. and high savings for the consumer, “Goldman Sachs analyst Rod Hall said in a research note on Wednesday.
Hall continued to be one of Wall Street’s most bearish analysts at Apple, reiterating a $ 140 target price on the shares. At current price levels, Hall estimates a 5.4% drop in Apple shares over the next twelve months.
Goldman’s interesting comment comes as other people on the street had a positive takeover the day after Apple’s big product unveiled on Tuesday.
While Apple didn’t release anything flashy in terms of hardware, it may have done enough to whet the bull’s appetite in the long run.
As Yahoo Finance technical editor Dan Howley writes, the most prominent products in Apple’s new line are the iPhone 13 and iPhone 13 Pro. Both versions of the iPhone 13 get enhanced low-light camera features, with the iPhone 13’s ultra-wide-angle camera and wide-angle lenses that capture better photos in dim settings.
Perhaps to the disappointment of some analysts, Apple kept the prices of the new iPhones stable.
Meanwhile, Apple also introduced the Apple Watch Series 7. The new watch gets a 20% larger screen thanks to the smaller bezels and slightly larger body. However, Apple did not release any new features for the watch nor did it change the look too dramatically as had been rumored.
Shares of Apple fell slightly in trading on Wednesday afternoon.
“There were few surprises at Apple’s product launches, as media coverage continues to give product details well in advance of the launch. In the iPhone 13 family, we see that the update is more incremental than the transformative with respect to that of the iPhone 12, but we continue to believe that there will be a strong upgrade cycle due to demand for a 5G device, ”said Sidney Ho, an analyst at Deutsche Bank.
He reiterated his rating of buying into Apple shares.
Ho added: “Overall, the launch of the iPhone was generally in line with expectations and we don’t see anything that has been announced related to the iPhone that should change the investment thesis of the stock.”
Yahoo Finance Dan Howley contributed to this story.
Brian Sozzi is a general publisher and still Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi yen LinkedIn.
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