Apple Offering Another Buying Opportunity After Recent Selloff

Apple Inc. AAPL shares have been hit hard since the company’s fiscal Q4 earnings report, but the dip may be a huge buying opportunity for investors. According to Drexel Hamilton analyst Brian White, Apple stock is the best buy in the market for the remaining weeks of 2016.

“Apple remains our top pick for H2:2016 given our view that the sales, profit and iPhone cycle have bottomed, while valuation remains depressed (9.0x our CY:17 EPS estimate, ex-cash) and we expect the iPhone 7 cycle will return the iPhone franchise to Growth,” White explains.

White believes that negative investor sentiment towards Apple is beginning to die down and the stock could re-gain lost iPhone momentum starting in Q4. Drexel Hamilton believes that the bottom of the iPhone cycle came in fiscal Q2, which sales dropped 16 percent year-over-year. The firm is calling for a return to year-over-year iPhone sales growth in fiscal Q1.

Overall, Drexel Hamilton believes iPhone unit growth will come in at +7 percent in fiscal 2017.

White is convinced Apple’s 2016 sales downturn will play out similarly to the company’s 2013 dip in the long-term.

Drexel Hamilton maintains its Buy rating and $185 price target for Apple stock.