Weaker demand for Apple products as well as a lackluster reception for the iPhone XR outside of the United States will prevent shares from advancing at all over the next year, according to Goldman Sachs.
“In addition to weakness in demand for Apple’s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received,” Goldman analyst Rod Hall wrote Tuesday.
“Our estimates remain at the lower end of Apple’s guidance range at this point as we believe the company likely included this more negative scenario in its provided range,” Hall added.
Goldman Sachs reiterated its neutral rating on Apple shares and cut its price target to $182, down from $209. That implies 2 percent downside over the next year.