Goldman Sachs' “Conviction List - Directors' Cut,” the bank’s selection of top buy-rated stocks, no longer includes Apple (NASDAQ:AAPL), the investment giant said in a Friday note. Apple stock fell 0.8% on the news.
Despite the move, analysts at Goldman maintain that the market's emphasis on the deceleration of product revenue growth overlooks the resilience of the Apple ecosystem, along with the stability and predictability of its associated revenues.
“Analysts see Apple’s installed base growth, secular growth in services, and new product innovation as more than offsetting cyclical headwinds to product revenue, such as a reduced iPhone unit demand from a lengthening replacement cycle and reduced consumer demand for the PC & tablet category,” the note states.
Goldman stressed that multiple factors could lead to a stock being removed from their Conviction List such as analysts revising their opinions due to a lack of confidence in their initial assessment or achieving the anticipated price target, among other things.
Meanwhile, Southern Co (SO) was also taken off the list, while new additions include Amgen (AMGN), Monday.com (MNDY), and Vulcan Materials (VMC).