Jim Cramer -- I Agree Totally With Goldman's Apple Analysis

Apple is relying more on services as a source of revenue, which should bode well for the stock, say Goldman analysts. Cramer agrees.
By Bret Kenwell ,

Apple (AAPL) - Get Report  shares are up over up 3% after analysts at Goldman Sachs placed the stock on its conviction buy list and assigned a $163 price target. 

There's been a lot of negative chatter surrounding Apple because of a possible slowdown in analysts' channel checks, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

"That's the kind of nonsense that's kept people out of the stock," Cramer said of those analyzing the AAP holding's supply chain. "Finally, an intellectual analysis," he said about the Goldman analysis, with which he wholeheartedly agrees. 


Apple AAPL data by YCharts

He said the Goldman analysts expect Apple to shift from being mostly a device company to a services company, which will provide continual, potentially higher, streams of revenue. 

The company's services opportunities, coupled with the strong sales for its iPhones and other devices, make it "absurd" that the stock trades at a 30% discount to the S&P 500, Cramer concluded.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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