Brian White: China, Market Malaise Is Creating 'Irrational' Valuation For Apple

• Apple Inc AAPL shares have declined over 21 percent since July 27, closing at $103.12 on August 24, over growing concerns related to China.
• Cantor Fitzgerald's Brian J White reiterated a Buy rating on the company, with a price target of $195.
• Fears related to China are overblown and the company is poised for robust growth in the region, White believes.

Analyst Brian White said the growing concerns related to China had taken Apple's stock to “severely depressed valuation levels.” White believes that these are overblown, highlighting that “4G expansion in China, the rise of the middle class and Apple’s expansion across the country” are likely to continue to provide “big” growth opportunities to the company.

Greater China, which comprises of Mainland China, Hong Kong and Taiwan, represented 27 percent of Apple’s 3QFY15 sales and sales from this region were up 112 percent year-over-year.

The growth in China sales was driven by “a larger form factor iPhone, an expanding relationship with China Mobile and the benefit of easy comparison's given the later than expected ramp (and supply constraints) of the iPhone 6/6 Plus in Mainland China,” the Cantor Fitzgerald report mentioned.

White said that iPhone 6’s popularity in China is high even though Apple is yet to make a push into Tier 3-5 cities and that only 12 percent of 4G LTE in the Asian nation had been penetrated. Apple intends to further expand the number of its retail and online stores.

The longevity of the larger iPhone cycle, the ramp of Apple Watch, new expansion opportunities across China, the emerging opportunities in India and an ever-strengthening global brand are expected to drive Apple’s performance in the future, White added.