Despite Apple (NASDAQ:AAPL) shares continuing to decline, analysts at Wedbush continue to remain bullish on the stock.
The firm said Tuesday that the current sentiment is "dismal" with China headwinds impacting the stock, but they remain positive on the iPhone maker.
"While investor sentiment around the AI Revolution is reaching a feverish pitch, on the other hand, Street sentiment and worries around the Apple story resemble that of a horror show right now," analysts at Wedbush wrote.
The biggest concern around Apple is based on negative data points on China smartphone demand that show sluggish sales for iPhones in the key region.
Nevertheless, Wedbush's bullish stance is based on four factors. Firstly, they believe the current iPhone estimates for 2024 remain hittable with 2025 Street estimates conservative.
They also feel that pent-up demand around an upgrade cycle could exceed 270 million iPhones heading into iPhone 16. At the same time, "Services remains rock solid with double-digit growth and a key to the valuation support."
Analysts also said that "AI is finally coming to Apple in the form of new App Store enhancements and built into iPhone 16 based on the firm's research in the field. Wedbush also notes that Apple "has the strongest installed base of any company in the world with 2.2 billion iOS devices and the next phase of monetization is on the horizon."
"In our view, brighter days will be ahead for Apple, although right now, the China story remains the dark cloud over the name in the near term," analysts at Wedbush stated.