Goldman Cuts Apple Price Target To Factor In Lower Smartphone Growth

Goldman Sachs trimmed its share price estimates on Apple Inc. Thursday to factor in lower growth expectations for smartphones and tweak its iPhone expectations with a detailed regional focus. Analysts led by Simona Jankowski cut the price target to $124 from $136. Goldman recently lowered its smartphone unit growth forecast for 2016/17 to 5%/4% from $6%/7%. The bank also lowered its fiscal 2016 earnings per share forecast to $8.39 from $8.40, but kept it above the $8.29 consensus, based on 211 million iPhone unit sales versus 212 million. "Our reductions are driven by lower market growth, as well as lower ASPs on a greater shift from developed to emerging markets, which we expect will drive a higher mix of the lower-priced iPhone SE (and its successors) relative to the higher-priced iPhone 7 (and its successors)," said the note. Apple shares were down 0.5% in premarket trade, and are down 6.5% in the year so far, while the Dow Jones Industrial Average has gained 2.5%.