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TheStreet Open House

Buy Apple on Investor Unease: Goldman

CUPERTINO, California ( TheStreet) -- Apple's (AAPL - Get Report) listless share price could present a gilt-edged buying buying opportunity for investors, according to Goldman Sachs, which says that recent concerns about the company's upside are overstated.

"We continue to believe the current valuation represents a remarkably attractive buying opportunity," explained Goldman analyst Bill Shope, in a note released on Monday. "We would be aggressive buyers of Apple's stock."

Apple
Apple's current valuation presents an attractive buying opportunity, says Goldman Sachs.

Apple shares have dipped more than 2% over the last three months, halting the phenomenal growth that has come to be associated with the company's shares. Investors have been spooked by a number of factors, including Apple's apparent decision to eschew its traditional June launch for the new iPhone 5, as well as recent iPad supply constraints.

Apple has given little indication of its iPhone 5 launch plans although it has confirmed that its June Worldwide Developers' Conference, typically the launch pad for new hardware, will focus on its iOS and Mac operating systems. Set against this backdrop, there has been speculation that the iPhone 5 may not appear until the fall.

Goldman's Shope, however, thinks that investors should not lose too much sleep about this issue, particularly at a time when iPhone sales are going through the roof.

"We believe iPhone demand remains robust without a refresh, and last quarter's sharp unit upside further supports this view," he wrote. "We believe a one-quarter delay to the iPhone 5 would have no fundamental impact on the long-term profit drivers of the company in 2011 and beyond."

The analyst, who believes that supply chain "hiccups" offer the best opportunities for Apple's stock, adds that the uptick in new iPhone sales will likely shift from the September to the December quarter.

Shope also feels that any uncertainty about the iPad is overblown.

"Last quarter's iPad shortfall has led some to believe that this key product line may be less of a growth driver than many had hoped," he wrote. "We believe this couldn't be further from the truth."

The supply-side constraints that recently impacted iPad sales appear to have eased, according to Shope, who expects Apple to ship 8.1 million tablets in the June quarter, a 72% sequential hike.

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