A selloff that has sent Apple's stock plunging into bear market territory is "insanely insane," one bullish analyst said Monday, arguing that the company's fundamentals should bring the stock's decline to an end soon.
Market watchers are split on whether Apple's swoon is either herd selling or something more fundamental. Yet Topeka Capital Markets analyst Brian White says the punishing Apple has taken appears overdone.
"If you look at the valuation here, you look at the cash balance, look at the product portfolio, this is insanely insane," White said. "It does not make any sense."
Since late September in the wake of the launch of the iPhone 5, Apple's stock plummeted by 25 percent, dipping to $505 last week.
White — who a few weeks ago put a $1,111 price target n the stock — said "fiscal cliff" concerns are part of the reason for Apple's woes. Still, he argues the selloff has gotten overdone.
Amid widening concerns of a "profit recession," the analyst said Apple's cash-rich balance sheet would insulate the company from that problem.
"If you are worried about a recession, Apple is a better way to play it, especially at this valuation," White said.
After having received feedback on a research note rom a friend based in China, who recommended that investors short the company's stock, White said he became convinced the worst is likely in the rear-view mirror.
"When it's out to people in China that they should be short Apple, it's over," White said. "The bottom is in, and that's the way I feel about it."
—By CNBC.com's Javier E. David
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Disclosures:
Brian White owns no Apple stock, and his firm has no investment banking or other conflicts with the company.