Apple shares rise after upgrade by Bank of America

Bank of America upgraded Apple shares to buy from neutral on Monday, saying the recent pullback in the stock “presents opportunity.”

The bank also raised its 12-month price target to $210 from $180. Apple’s shares rose 1.7 percent in premarket trading Monday to $175.80.
Here’s what analyst Wamsi Mohan said in the note about the upgrade:
APL stock is down 26% from its peak (S&P down 9%) and up 9% YTD (inline with S&P 500 and below the [tech sector’s return] of 13%). Our scenario analysis suggests that shares are discounting a “declining hardware” scenario (ex-cash, services), and the debate hinges on the L/T trajectory. In our opinion, weakness in hardware is not entirely structural. Our new PO of $210 is based on assumptions closer to scenario 2 (flat hardware, and somewhat slower than historical growth in Services

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