Apple has become the most shorted stock in Jefferies’ “Sweet 16” group of leading tech firms, with traders betting against it by selling borrowed shares, hoping to repurchase them later at a reduced price.
Hedge funds that have soured on Apple stock may be overreacting, research from Goldman Sachs indicates.
The bank reiterated a Buy rating on the stock on Tuesday, lowering its price target from $259 to $256, a figure that suggests the shares could rally 25% in the next 12 months.
While Goldman acknowledged tariff risks and slowing gadget sales, it said investors are overlooking the potential benefits of Apple’s loyal customer base. That loyalty translates into predictable revenue and profits that investors should prize, and will help Apple build its services business, including products like Apple TV+, Apple Fitness, and Apple Watch, according to Goldman.
“Apple’s installed base growth, secular growth in services, and new product innovation should more than offset cyclical headwinds,” Goldman Sachs wrote.
MacDailyNews Take: Apple shares hit a low of $169.21 on April 8th, just twelve trading days ago. Did you stock up while the stocking was good?
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