Goldman Sachs has taken Apple off its list of most highly recommended stocks, joining other analysts in dialing back its expectations for the company.
Goldman analyst Bill Shope said in a client note that the iPhone 5, introduced last fall, hasn't sold as well as he expected. He says the company now needs some real “hits” among the products it rolls out during the second half of the year.
Shope took the company off Goldman's “Americas Conviction List,” a list Apple Inc. had been on since December 2010. But he keeps a “Buy” rating for the company.
Aircraft orders drive up factory activity
U.S. factory orders rose sharply in February from January on a surge in demand for volatile aircraft. The gain offset a drop in key orders that signal business investment. The Commerce Department said Tuesday that factory orders increased 3 percent in February. That's up from a 1 percent decline in January and the biggest gain in five months. The increase was due mostly to a 95 percent jump in orders for commercial aircraft.
Brake lines prompt Subaru recall
Subaru is recalling about 200,000 Legacy and Outback all-wheel-drive vehicles because the brake lines can rust and leak fluid. The recall affects cars from the 2005 through 2009 model years sold in 20 states and Washington, D.C., where salt is used to clear roads in the winter. No related crashes or injuries have been reported, Subaru spokesman Michael McHale said.
Target ends Geek Squad experiment
Best Buy Co. and Target Corp. have ended their experimental Geek Squad partnership. Last October, the two Minnesota-based retail giants launched a six-month pilot program in which Geek Squad agents staffed the electronics departments at 29 Target stores, mostly in the Denver area but also one location in the Twin Cities region. Target had hoped Geek Squad agents would add value to its efforts to sell more televisions and computers, a category the Minneapolis-based company has struggled with in recent years.