Apple initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Michael Ng initiated coverage of Apple with a Buy rating and $199 price target. The analyst says Apple’s success in hardware design and brand loyalty has led to a growing installed base of users that provide visibility into revenue growth. The company’s installed base growth, secular growth in services, and new product innovation should more than offset cyclical headwinds to product revenue, the analyst tells investors in a research note. The firm says Apple’s valuation is attractive relative to its historical multiple and to peers.