Tom Reese/Paul Rubillo, Dividend.com
Apple Inc. (AAPL) shares are down 2% so far this morning after a Goldman Sachs (GS) downgrade.
The analysts at Goldman believe the shares may be too expensive given an expected slowdown in consumer spending. Their research indicates that shipments of MacBooks, iPod nanos, and iPhone were all slightly lower than what was expected.
They have trimmed their 2009 EPS guidance to $4.75 per share from $5.13, and lowered their 12-month price target on the stock to $115 from $125. If shares do continue to weaken, investors should keep an eye on the $68-72 levels last hit in late 2005. For an investor looking for tech exposure, this non-dividend paying stock should be on the radar for a potential holding if shares do pull back to attractive levels.
The Bottom Line
We like to watch Apple as our tech bellwether and this morning's downgrade is something that market watchers believe is already factored in the price, and should not hit shares down much further.
Apple Inc. (AAPL) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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