(Bloomberg) -- Apple Inc. was removed from Goldman Sachs Group Inc.'s list of top buys after underperformance in its stock amid concerns over weak demand for its key products.
The iPhone maker had ranked in the 20-25 member “Directors' Cut” version of Goldman's conviction list since it was unveiled last June. Its share price is little changed in that span while the S&P 500 Index has jumped almost 22%. Apple dropped 0.6% Friday after its removal from the list.
Apple has lagged its Magnificent 7 peers even more dramatically, trailing all but Tesla Inc. Concerns of a prolonged iPhone sales slump have been the main culprit, particularly as China's economic troubles continue.
Goldman said its Directors' Cut list is reviewed monthly, with stocks being removed if they are “no longer a top investment idea”. Analyst Michael Ng maintains a buy rating on Apple on the belief that “the market's focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability & visibility,” the broker's report said.
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