Why Apple's Stock Sell-Off Is A Golden Buying Opportunity

Apple Inc. AAPL shares may have taken a beating in the recent tech sell-off, but an analyst at Wedbush analyst said his conviction in the stock has only increased.

The Apple Analyst: Daniel Ives has an Outperform rating and $175 price target for Apple shares, with the bull case price target at $225. Wedbush added the stock to its "Best Ideas" list. 

The Apple Thesis: After a stellar December quarter, when Apple managed to crush iPhone estimates, some cuts in the iPhone forecasts for fiscal year 2021 were discounted by the market, Ives said in a note.

This is reflected in the stock's sell-off over the last month, the analyst said. 

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Wedbush's Asia checks are markedly bullish, suggesting over 230 million units for 2021, he said.

The initial build forecast for the iPhone 13 indicates the supercycle will continue into fiscal year 2022, Ives said. 

"Geographically speaking, demand in China looks strong coming out of the Chinese New Year and remains a linchpin to our Apple bull thesis." 

See also: How To Buy Apple Stock

The analyst also sees continued uptick in ASPs due to a higher mix of the iPhone Pro and Pro Max, with the Mini being significantly scaled down around production/demand globally.

With a $3-trillion valuation in sight for Cupertino, the recent sell-off in share creates a golden buying opportunity, according to Wedbush. 

AAPL Price Action: Apple shares lost 0.91% in Wednesday's session, closing at $119.98. 

Photo courtesy of Apple.