Bank of America (NYSE: BAC) upgraded Apple (NASDAQ: AAPL) shares to buy from neutral on Monday, saying the recent pullback in the stock "presents opportunity."
The bank also raised its 12-month price target to $210 from $180.
According to BAC analysts, "Our scenario analysis suggests that shares are discounting a 'declining hardware' scenario (ex-cash, services), and the debate hinges on the L/T trajectory. In our opinion, weakness in hardware is not entirely structural."
The analysts conclude, "Our new PO of $210 is based on assumptions closer to scenario 2 (flat hardware, and somewhat slower than historical growth in Services)."
BAC downgraded the stock last fall, saying, but listed in the note eight other reasons why Apple is a "buy" now, including "stability of supply chain order cuts" and "growth across health-care, wearables and increasing services penetration."
The analyst also noted that some of the weakness in China could be blamed on the strength of the U.S. dollar and now that China's yuan has rebounded vs. the dollar this year, it could become a positive for Apple sales in the country.
Last week, Apple announced its intention to transfer the securities exchange listing for its Euro and Sterling denominated debt securities listed below from the New York Stock Exchange to the NASDAQ Bond Exchange effective March 14, after market close. The debt securities are expected to begin trading on the NASDAQ Bond Exchange this Friday.
Shares in Apple leaped $3.49, or 2%, to $176.40
