Shares of Apple (NASDAQ:AAPL) declined by 4.6% on Thursday, following bearish comments by a respected investment firm.
Goldman Sachs warned investors not to be too bullish on Apple's near-term prospects. The company's analysts predict that demand for the technology-titan's products will wane over the remainder of 2020. It also fears that Apple could push back the launch of its next iPhone.
"On this basis we see Apple's recent stock performance and absolute trading level as unsustainable and would continue to recommend that investors avoid the stock," Goldman analyst Rod Hall and his team said in a report.
Goldman reiterated its sell rating on Apple's stock. Even after raising its target price from $268 to $299, its new price forecast represents potential downside of nearly 20% for investors, based on Apple's closing price of $371.38.
A delayed iPhone launch could certainly lead to a pullback in Apple's share price. The iPhone is Apple's most important product and accounts for an enormous amount of its profits.
However, a delay would likely only be temporary, and therefore should be of relatively little concern to long-term investors. Thus, should the stock sell off significantly -- and particularly if it approaches Goldman's $299 target price -- patient investors may wish to view it as an opportunity to buy Apple's shares at a discount.