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Apple dip is great buying opportunity: Bank of America

An Apple employee hands over Apple iPhone 7 phones at an Apple store on Sept. 16, 2016 in Berlin.
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Investors should buy Apple shares as the decline spurred by a third-party research firm's negative report is unwarranted, according to Bank of America Merrill Lynch, which reiterated its buy rating.

The tech giant's stock fell 1.7 percent Friday on GfK's market research data on iPhone sales.

"Our conversations suggest that the sellout data from a third party released Friday indicated iPhone 7/7+ sales down 25% Y/Y in International (non-North American) markets over the launch weekend," Bank of America analyst Wamsi Mohan wrote in a note to clients Sunday.

"In our opinion this data is not representative of true demand. ... Apple may have allocated more supply to U.S. locations in general, and/or to its own retail stores in other countries vs. to other outlets. We would view the pullback in shares as a particularly attractive opportunity."