Shares of Apple jumped 1.69% to $277.99 a share in premarket trading after analysts at Oppenheimer boosted their rating on the tech giant's stock to outperform while hiking their price target to $320 a share.
Apple is well-positioned to weather both the disruptions to the company's supply chain in China as the coronavirus takes a toll, and rising competition as well, according to the Oppenheimer research note.
Analysts at Oppenheimer expect Apple's growth to return to normal by the second half of 2020, with "temporary shifts of iPhone shipment between product cycles to have an immaterial impact on the stock."
The research note cited Apple's ability to turn new technology into new products ranging from the iPhone to Watch to AirPods that are "deeply personal and indispensable everyday objects."
"We believe Apple products and services will prove more resilient than competitive products in uncertain times," analysts at Oppenheimer wrote, noting Apple also has a leg up over its competition in navigating "changing supply chains."
Any weakness exhibited by Apple stock, in turn, should provide an opportunity for investors to get in at a lower price.
"We would be buyers of weakness," Oppenheimer noted, adding later "we see the stock oversold at these levels."
Oppenheimer also sees demand returning to normal for the next iPhone launch, with Apple, though relentless rounds of new accessories and upgrades, "building an ecosystem with stronger resistance to competition."