FBR Defends Apple, Notes Company Is 'Uniquely Compelling Name To Buy'

Shares of

plunged as low as $92.00 per share shortly after Monday's open but have nearly recovered all losses and appears to have found support above the $100 mark. Traders and investors were looking for reassurance that Apple's China business remains as strong as it has ever been and can continue fueling growth. Tim Cook, Apple's CEO,

Cook told Cramer.

"Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last two weeks."

Daniel Ives of FBR & Co. defended Apple's stock on Monday while maintaining an Outperform rating and $175 price target. In a brief note, Ives noted it has been a "miserable, dark period" for Apple investors since June while recent China related panic over the past few weeks certainly extended into Monday's trading session. Ives acknowledged the "white knuckle" period for Apple and its investors, but pointed out the following: 1) less than 30 percent of iPhone customers have upgraded to the iPhone 6 to date, 2) a major product cycle is ahead with the launch of the iPhone 6s, 3) even taking a 30 percent haircut to prior estimates, the China market still represents a $100 billion opportunity over the next three years, and 4) shares are trading at around 8x (excluding cash). "We believe that Apple is a uniquely compelling name to buy in this hurricane-like market downdraft this morning," Ives concluded. "In our opinion, Cook & Co. are about to embark on their next phase of strong growth on an iPhone 6/6s product super-cycle and a host of new product categories paving the way for this next chapter of growth into fiscal 2016/17."