Analysts At Baird, UBS Debate Apple's Stock

Will Power of Baird and Steven Milunovich of UBS were both guests on CNBC to talk about Apple Inc. (NASDAQ: AAPL)'s stock.

According to Power, Wall Street's consensus estimates on Apple's earnings heading into fiscal 2017 are "too high" as the Street's expectations for the iPhone 7 are "too lofty." Accordingly, the analyst sees downside risk in Apple's stock despite trading near multi-year lows.

On the other hand, Power suggested investors should value Apple's stock at a premium to the historical 5-6x on consumer hardware stocks. The analyst added that even an approximate 8x multiple on his Street low estimates implies an approximate valuation of $87 to $90 per share.

Meanwhile, Power has a $115 price target on Apple's stock. He explained that over a longer-term horizon (heading into the eventual iPhone 8), the stock will "work better."

Milunovich jumped in and said Apple's stock is "relatively inexpensive" and "over-sold." He noted that a recent proprietary survey of 6,000 consumers across the world suggests interest in the iPhone 7 will be greater than the current iPhone 6S but not as strong as the iPhone 6.

He added that Apple should be viewed as a "platform company which gives it optionality down the road" with its billion-plus devices across hundreds of millions of users.

Milunovich concluded that the next 3-6 months for Apple will be "tough" but after that time period the stock likely "has better upside than downside."