Apple Inc. AAPL is looking like a hot stock again, with Samsung Electronics SSNLF dealing with significant backlash after officially halting production and sales of its Galaxy Note 7 smartphone.
Samsung's stock has dropped over 15 percent in the past five days. Apple remains Drexel Hamilton's top pick for the second half of 2016.
"Our view that the sales, profit and iPhone cycle have bottomed, while valuation remains depressed and we expect the iPhone 7 cycle will return the iPhone franchise to growth," said Drexel Hamilton.
Due to the Samsung fallout, analyst Brian White believes Apple has the opportunity to pick up "at least 8 million incremental units in CY:16" and that this news could permanently damage the Samsung brand in the smartphone market.
It also gives Alphabet Inc GOOG a good opportunity to break into the No. 2 spot in the smartphone market, with the upcoming release of its Pixel Smartphone.
Drexel Hamilton has a Buy rating on Apple with a $185 price target, representing 58 percent upside from current levels.
The stock was trading up about 1 percent at $117.23 today, a 2016 high.
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