Despite many investors piling on to Apple on the downside, some market pros see it as a buy at the current level, both from a fundamental and technical perspective. Eighteen Wall Street analysts listed Apple as a "strong buy" and 26 as a "buy" out of 57 covering the stock, according to data from Thomson Reuters.
Only two listed the company as "underperform" and one as a "sell." Ten recommended "hold."
After its disappointing earnings report last week, Apple lost its place as the world's most valuable company to ExxonMobil. The report helped drive Apple''s stock to 52-week lows after a historic runup over the past several years. CNBC's Jim Cramer said he thought the market reaction was "unfair."
Power said the high average selling price of the iPhone had been a positive for Apple, but investor pressure to release a lower-price model could signal "another downward leg to the story, offsetting some long-term positives."
However, he said a game-changer such as an Apple television or another major product could "throw a wrench into the equation" and reverse negative evaluations like his.
"As we look at the products and the trajectory as it stands today, we're concerned that consensus estimates are still too high," said Power.
Disclosure information was not immediately available.