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The recent pullback in Apple Inc (Nasdaq: AAPL) is an opportunity to buy because the bull case could see this stock trading at $235 a share – that’s according to a Morgan Stanley analyst.

Here’s why Apple stock is worth buying

That suggests a whopping 75% upside from here.

The iPhone maker has taken a big hit since mid-August on supply-related concerns (detailed here). Still, Erik Woodring said in a note this morning:

 

While most investors are focused on near-term supply disruption, we believe this overlooks the strength and health of Apple’s ecosystem, where we remain bullish.

The tech behemoth has over a billion incredibly loyal users worldwide – and that low churn should sufficiently address the concerns of softening demand, he added. At writing, Apple stock is down nearly 25% versus its recent high.  

Apple has room to grow its core business

Woodring’s base case is for the multinational to trade at $175 a share. That still represents a 30% premium on its current price.

Within its current product categories, he noted, Apple can expand its footprint in emerging markets to drive growth without entirely relying on the next iPhone category. That’s another reason why he recommends buying Apple stock.

 

Any stock dislocation presents an opportunity to own one of the highest quality tech platforms featuring a first-rate management team and consistent execution that’s trading in-line with its trailing 5-year average PE ratio.

Supply-side of things is now likely to get better for Apple Inc as well now that China is reopening. The Nasdaq-listed firm is committed to diversifying its supply chain as well.

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