Goldman Sachs Cuts Apple PT To $140 vs $180

Apple (AAPL) shares slid 8.9% during Thursday’s pre-market session as Goldman Sachs (GS) reduced its 12-month price target on the digital devices maker from $182 to $140 due to its more “cautious outlook.”

Apple late Wednesday cut the midpoint of its Q1 revenue outlook by 8% to about $84 billion, well below the analyst consensus of $91.4 billion on Capital IQ.

In a research note, Goldman Sachs analysts cited downside risks including weakening iPhone demand, pressure on gross margins and large and dilutive acquisitions.

“Apple’s guidance cut confirms our negative view on demand in China that we have been flagging since late September,” Goldman said in the report.

“We are reducing our FY19 revenue estimate by 6% to $253 billion and FY19 EPS by ~10% to $11.66,” said Goldman.

Potential upside risks for Apple include better-than-expected iPhone demand, better-than-expected iPhone mix, and significantly outsized buybacks and dividend increase, the firm said.

Apple shares fell 8.9% to $143.95 ahead of Thursday’s opening bell.