As Apple Faces Stiffer Competition, Can the Stock Recover?
McCourt of Raymond James, who has an outperform rating and $600 price target on Apple, said there is an easy case to be made for the stock to move higher. The iPhone 5S could lead to more upgrades than the iPhone 5 did. Apple could enter lower-end markets, higher-end markets with bigger screens, TVs and watches, he said.
"A lot of things could get revenues re-accelerating over the next 12 to 18 months and if so it's not a stretch to see the stock over $800 in 18 months," McCourt said. "A lot of the performance will depend on what product Apple chooses to launch. It's difficult to predict, but I think the risk to reward is quite positive right now."
Stick With the Arms Dealers?
As Apple and Samsung continue to do battle in the smartphone wars, a better investment strategy may be to invest in the arms dealers instead of the warriors, said Alex Gauna an analyst at JMP Securities.
"It's very difficult to predict who's going to win this war. So we've been recommending playing the arms dealers, the Qualcomm, the Skyworks, that are going to win no matter who wins in this," he said. Both companies are communication chip makers.
He added that Samsung has just set a very high bar for Apple to match. Gauna, who has a "market perform" rating on Apple, expects a new version of the iPhone 5 as well as a device that will work on the China Mobile network.
"Again, we're expecting Qualcomm and Skyworks to come out winners when those phones are announced," he added.
—By CNBC's Justin Menza
David Garrity and his firm own Apple stock; Raymond James makes a market in Apple securities; Walter Piecyk and BTIG had no conflicts to report.