Apple Stock Still Worth $200 After Climbing 'Wall Of Worry,' Says Brian White

• The share price of Apple Inc. AAPL has declined 13.64 percent over the last six months, from a high of $132.65 on April 27.
• Drexel Hamilton’s Brian J. White has reiterated a Buy rating on the company, with a price target of $200.
• Despite “a wall of worry,” the company’s 4QFY15 EPS beat the consensus and the estimate. Apple also provided healthy guidance for 1QFY16, with “the company's trademark conservatism.”

Analyst Brian White said that despite difficult year-on-year comps, Apple expects see witness iPhone growth in 1QFY16, “while Apple fever continued in China with another strong performance on the mainland.”

White believes that Apple is among the most undervalued tech stocks, although the company is better positioned than ever before to benefit from the ramp of mobile Internet.

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For 4QFY15, the company reported its sales ahead of the consensus and the guidance but below the estimate, while the pro forma EPS beat the consensus and the estimate. Operating profit also came in ahead of the estimate.

Although iPhone unit sales for the quarter missed the estimate, they posted robust year-on-year growth of 22 percent. “Apple expects iPhone unit and revenue growth in the December quarter,” the Drexel Hamilton report stated.

Despite concerns related to China, the company reported 99 percent year-on-year revenue growth for Greater China, with 87 percent growth in iPhone sales. For Mainland China, iPhone sales were up 120 percent year-on-year.

Apple guided to sales of 75.5-77.5 billion in sales for 1QFY16, below the prior estimate and in-line with the consensus. The revenue estimate for 1QFY16 has been lowered from $80 billion to $79.96 billion.

The FY16 EPS estimate has been raised from $10.03 to $10.13, while the FY17 EPS estimate has been raised from $11.15 to $11.41.