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Negative sentiment toward Apple ( AAPL ) stock has gone too far, Drexel Hamilton analyst Brian White said in a report Tuesday. “In our view, the ‘gloom and doom’ sentiment engulfing the Apple story has reached extreme levels and we believe the stock represents an exceptional value,” White said. He reiterated his buy rating on Apple stock with a price target of 185. “We continue to look forward to a new iPhone cycle with the iPhone 7 and new geographic opportunities (e.g. India), combined with longer-term opportunities that leverage its powerful ecosystem, iconic brand and deep financial resources,” White said. Still, White noted weakness in Apple’s supply chain in April, which is likely the result of the company’s planned $2 billion iPhone inventory reduction. Apple stock is down 12% year to date and down about 30% from its all-time high of 134.54, reached April 28, 2015. Apple was up 0.3% to near 93 on the stock market today . “We believe that Apple is extremely oversold,” White said. He predicted that the current quarter, Apple’s fiscal Q3, will mark a trough for sales and operating profit. He expects Apple’s financials to recover starting this fall with the iPhone 7 release. “In our view, the combination of a difficult year-over-year iPhone comparison and a tougher-than-expected macro environment are largely to blame for Apple’s recent challenges,” White said. “Moreover, the market gives Apple no credit for its expansive digital matrix across software, services and hardware that deliver a seamless experience for an installed base of 1 billion active devices.” Apple stock has been knocked down by worries about declining iPhone sales, a slowdown in China and a perceived lack of innovation. Apple’s last new product category was the Apple Watch smartwatch, which debuted in April 2015. Sales to date have been underwhelming. Apple Watch Study Finds Device Comes Up Short A yearlong study of Apple Watch early adopters by brand agency MBLM found users are conflicted about the wearable device. MBLM’s panel of Apple Watch users felt that the watch has not come close to achieving its potential and offers less value than they had hoped for. “The Apple Watch does not measure up for most people,” Mario Natarelli, MBLM’s managing partner, said in a statement . “For the device, which Apple claimed to be its most intimate, to be successful, we believe Apple needs to reach deeper and form stronger bonds with its users.” The biggest complaints about the Apple Watch include its dependence on the iPhone and lack of must-have applications. MBLM found little interest in the next-generation Apple Watch among its panel of users. “No one on the panel said that they would definitely purchase the next version of the Apple Watch,” the firm said. “Most feel that the updates will not be significant and the cost will not be worth it. However, some did mention that they might consider it if there is a trade-in program.” RELATED: When Tim Cook Gives A TV Interview, Apple Investors Should Beware How Many Watches Did Apple Sell Last Quarter? Scalper1 News
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