Beaten down over the spring and summer, shares of Apple have upside potential in both the near- and long-term, Steve Milunovich of UBS said Wednesday.
"Apple's like a fighter that's been taking punch after punch over the spring and summer, and finally it's going to start fighting back," he said. "I think psychologically this stock could go higher."
(Read more: Waiting for the 'tapernado' to hit)
Milunovich raised his Apple price target to $560 per share from $500 and kept his "buy" rating on the stock, largely on the expected strength of the iPhone 5C, the lower-cost version of its wildly popular smartphone.
On CNBC's "Fast Money," he said that Apple was expected to ship 17 million iPhone units in fiscal 2014, with Asia's telecom behemoth China Mobile accounting for 10 percent of that total.
(Read more: Correction could top 5 percent: Byron Wien)
"We're assuming most of those will be the 5C, the lower-end phone," he said. "And we believe in general there's maybe 100 million people in China that can afford an Apple phone."
A deal with China Mobile could come by the end of 2013, Milunovich added.