Shortly before shares of Apple jumped to an all-time intraday high yesterday of $325.06, and before shares closed at an all-time closing high of $321.67, Goldman Sachs resumed its coverage of Apple with a respectable $430 price target.
To support the price target, Goldman Sachs analyst Bill Shope argues that other analysts are needlessly worried about falling profit margins at Apple. “Indeed, we believe Apple’s margins have already bottomed, and we expect the company to resume its leverage-driven upside in coming quarters,” says Shope. Analysts generally agree that Apple is pulling high profits from the iPhone, but that it is taking hits elsewhere in order to keep prices down.
While upwards of $320 for a single share of Apple stock is admittedly expensive, an ascension to $430 would comprise an increase of nearly 40%. Naturally, some folks are clamoring for Apple shares to split, but that seems unlikely in the near future, and indeed, Apple COO Tim Cook has indicated as much during earnings conference calls.
The march to $400 continues…