“In our view, Apple is on the verge of an extended product cycle that we believe will include a refresh of existing products, increased penetration within existing device categories and entirely new market opportunities,” said Brian White at Cantor in the report.
Yet Apple has weighed on tech ETFs this year. The stock is off 6.6% year to date compared with a gain of 16.6% for the S&P 500, according to Morningstar performance data.
“Apple’s stock has been challenged this year … however, we believe the stock is in the midst of a recovery,” White wrote. [Watch Your Apple Exposure in Growth ETFs]
Full disclosure: Tom Lydon’s clients own QQQ and AAPL.