Despite Badly Bruised Apple, Pro Sees $900 Target

Although Apple has shed roughly a fourth of its share price since September, two analysts see substantial upside for the company' badly bruised stock.

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Gene Munster, a senior analyst at Piper Jaffray, sees opportunity in both mobile and new markets, such as television, for Apple . In the near term, data and store surveys have shown that iPhone 5 sales are stronger than Wall Street's estimates, he said.

So what does he tell investors who have seen the market take a bite out of their Apple investments?

"I tell them it doesn't look pretty today, but there's [a] brighter future in the next month or two," he said. Munster has an "overweight" rating and a $900 price target on the company's shares.

"The reality is the stock should be significantly higher, and I think $900 — it's not going to be there tomorrow, but we should be on a pace to that based on these earnings," he said.

Meanwhile, William Power, a senior analyst at R.W. Baird, is not quite as bullish on the stock's upside but still maintains a "outperform" rating and a $750 price target on the company's shares. He added that he likes the stocks at its current level.

"It's always difficult to pick a hard bottom, but I think if you have a 12- to 18-month holding period, you'll be rewarded off of these levels," Power said.

Among investors, there have been questions about Apple's pace of innovation and its competition as many of the stock's owners have engaged in profit selling, he added.

Both analysts expect the tech giant to unveil a TV product by the end of next year although the form it will take remains unknown.

"I think aside from the opportunity of opening up a new market, it could really help re-demonstrate Apple's ability to be a leader in innovation, and that's what we really need from this stock," Power said.

—By's Katie Little; Follow her on Twitter @katie_little_

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Robert W. Baird and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or companies mentioned in this report within the next three months. Apple has been an investment banking client of Piper Jaffray within the past 12 months.