4. Apple Inc. (NASDAQ:AAPL) Removed from Goldman’s conviction buy list
While Wall Street analysts are effectively glorified salesmen — particularly in the aftermath of the JOBS Act — their published “opinions” nevertheless influence the market. Yesterday, chip-making giant Intel Corporation (NASDAQ:INTC) found itself on the business end of a JMP Securities’ downgrade. And today, Apple Inc. (NASDAQ:AAPL) is in the same unenviable position, after Goldman Sachs Group, Inc. (NYSE:GS) removed the company from its “famous ‘Conviction Buy’ list,” whatever that’s supposed to mean:
We remove Apple Inc. (NASDAQ:AAPL) from the Americas Conviction List, but we maintain our Buy rating. Based on Monday’s close, AAPL has gained 33.8% since being added the Conviction List on December 12, 2010, versus a 25.9% gain in the S&P 500. Our new 12-month target price is $575, from $660 previously, based on a 13X multiple (previously 14X) on our lowered CY2013 EPS estimate of $44.64 (previously $47.29). Key risks include delayed product cycles, supply chain difficulties, product price erosion, and a slower pace of product innovation.
I guess what Goldman Sachs Group, Inc. (NYSE:GS) is trying to say here is that you should buy Apple Inc. (NASDAQ:AAPL), but just not with conviction…
5. Today’s data
Finally, there are two data releases that promise to influence the direction of markets today. First, the Commerce Department reported — click here for the press release (link opens PDF) — that orders for goods produced in domestic factories rose 3% in February. This marks the biggest gain in five months and comes on the heels of a 1% contraction in January.
And second, the nation’s largest carmakers released sales figures for the month of March this morning. Among others, Ford Motor Company (NYSE:F) notched a 6% increase with 236,160 sold during the month. Its sales of cars were even with last year, while sport utility vehicles and trucks were up 14% and 6%, respectively. General Motors Company (NYSE:GM) reported similar results, also experiencing a 6% year-over-year increase. According to its vice president of U.S. sales, “General Motors Company (NYSE:GM) delivered its best March sales in five years thanks to a strengthening economy and new products, and we are expecting our third consecutive increase in market share versus last year.”
The article Apple Booted by Goldman, Fannie Mae’s Record Profit, and Other Financial Stories originally appeared on Fool.com and is written by John Maxfield.
John Maxfield owns shares of Bank of America and Apple Inc. (NASDAQ:AAPL). The Motley Fool recommends Apple Inc. (NASDAQ:AAPL), Ford, General Motors, and Goldman Sachs Group, Inc. (NYSE:GS). The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL), Bank of America, and Ford.
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