Buy Apple as a consumer staple, says Raymond James

Apple store workers celebrating in Istanbul, Turkey.
Islam Yakut | Anadolu Agency | Getty Images

Raymond James on Wednesday raised its rating on Apple to outperform from market perform, saying investors will stop expecting the high-growth days of old and see the stock for what it is: a steady earnings-growth and dividend story.

"[The] long, slow re-rating as [a] consumer staple has begun. ... We are more confident that AAPL revenues and EPS have bottomed barring a serious recession, and thus we believe the P/E multiple will expand," Raymond James analyst Tavis McCourt wrote in a note to clients Wednesday. "We expect revenue growth to return in March and EPS growth in June, and for the business to be far more of a stable growth business thereafter than it has been over the last several years."