Goldman cuts its Apple profit estimates

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The new Apple iPhone XR is displayed during an Apple special event at the Steve Jobs Theatre on September 12, 2018 in Cupertino, California.

Goldman Sachs is reducing its earnings forecast for Apple due to the smartphone maker’s new lineup of iPhones.

The firm lowered its fiscal 2019 earnings per share estimate to $13.77 from $14.53 and reiterated its neutral rating for the company’s stock.

“Apple rolled out new iPhones as expected but the new LCD ‘XR’ model was priced lower than we had thought likely. This effectively obsoletes two iPhone 8/8+ SKUs in our opinion and drives us to reduce our ASP and earnings estimates, offset slightly by a higher unit forecast,” analyst Rod Hall said in a note to clients Wednesday.

Hall reaffirmed his $240 12-month price target for Apple shares, representing 9 percent upside to Wednesday’s close.