FBR: Apple Will Be A $140-150 Stock Within Nine Months

Fears of the Chinese economy slowing down and the Chinese consumers reducing their spending have weighed on Apple Inc. (NASDAQ: AAPL)'s stock in the last few weeks. However, according to Dan Ives from FBR Capital Markets, even if the fears are true, it won't stop Apple's growth in China.

Ives was on CNBC to make his bullish case for Apple and to share his outlook on the stock.

China

"How I would really view this is China is a $150 billion market opportunity over the next three years," Ives began. "It's 7 percent penetrated, even if we take a 20 percent haircut to that, I think that incrementally adds 300 to 500 bips  of incremental growth versus the Street for 2016-2017."

iPhone 6s

He continued, "And when you look at the iPhone growth at this point, less than 30 percent have upgraded to a (iPhone) 6. You got 6s coming a week after Labor Day, ultimately goes to 70 percent plus by next year. And then you put this all together, you are looking at a stock trading 8 times ex-cash that's really going into the [...] the next renaissance of its growth cycle."

A White Knuckle

"And look my Uber was negative on Apple today. So, it's going to be very easy, you're firing in a crowded theater here. It's a white-knuckle, period. But ultimately, we think you hit from the black [... who] uses this opportunity where we are six to nine months from now is a $140, $150 stock," Ives concluded.