Pro: Apple Shares Have $50 Upside

Once valued at more than than $1 trillion, Apple Inc. AAPL is no longer the "lead dog" after falling nearly 40 percent from its peak, D.R. Barton of MoneyMorning.com told CNBC in an interview.

What Happened

Apple's stock run-up to $233 per share in 2018 was "overbaked a little bit," but a return north of $200 per share within the next 18 months is reasonable, Barton said during a Tuesday interview on CNBC's "Street Signs Asia."

Apple's P/E valuation of just 11 times is unjustifiably low, as it values the stock in-line with consumer staples, Barton said. 

Why It's Important

A stock's multiple can be cheap for a reason, and this thought could apply to Apple amid conversations over whether the company is hitting "peak iPhone" demand, Barton said. But even assuming Apple has reached peak demand for its devices, the company has different opportunities to monetize its base in new ways, he said. 

Apple also holds a new opportunity in targeting consumers who are waiting for an "affordable" iPhone to be launched, Barton said, adding that this is the only area where unit sales growth can come from.

What's Next

Apple's stock recovery could be justified if the company comes up with the "least little innovative move to push forward," Barton said. 

The stock was trading up 2.33 percent at $154.27 at the time of publication Wednesday. 

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Photo courtesy of Apple.