Techs on a Pullback? Analysts Offer Up Some Picks
Morgan Stanley also pointed to services like mobile payment and music-streaming as having the potential to lift the stock.
"Apple's advantage over other hardware platforms is its ecosystem, which creates 'stickiness' and opens new revenue streams," the firm's analysts wrote in a note. "Apple's 500 million-account base is second only to Facebook, and it grew an estimated 55 percent in 2012. Each account spent $329, translating to $95 of free cash flow last year, well above such other platforms as Amazon, eBay and Facebook."
The analysts have a $540 price target on the stock, implying 25 percent upside.
DoubleLine CEO Jeffrey Gundlach, meanwhile, said Apple shares could reach $500.
"Apple seems to be forming a base to me. I mean, it certainly moved down in a way that was frustrating for investors that were long, and it seems to have a hard time rallying above $450, but I think it's going to," he told CNBC.
FBR makes a market in Intel. Piper Jaffray makes a market in Apple securities and Apple is an investment banking client. Morgan Stanley owns 1 percent or more of Apple stock, makes a market in Apple securities, and provides investment banking and non-investment banking services to the company. Piper Jaffray makes a market in Intel securities.