Shares of Apple have tumbled more than 35% since reaching an all-time high of $705 last September. Earlier this week, the company’s stock fell below $400 for the first time since 2011 on fears that demand for the iPhone and iPad has begun to slip. Some investors have begun to dump Apple’s stock, however not everyone is abandoning ship just yet.
Colin Gillis of BGC Partners, per Benzinga, upgraded shares of the company on Tuesday from Hold to Buy, citing the reduced price as an opportunity for potential investors. He believes that the recent wave of negative press will result in any positive news propelling shares to jump to the $500 level.
The analyst warned that Apple still faces obstacles in the smartphone and tablet market, although new product cycles will likely see the stock price increase once again. Apple is set to report its second quarter earnings after the bell on Tuesday. Gillis thinks the company’s earnings will be on the lower end of Wall Street’s expectations and its third quarter guidance will be “tepid,” although such concerns have already been baked into the stock.