Amid excitement regarding the iPhone maker's upcoming earnings and longer-term prospects, Bank of America chose Apple Inc., a top selection for 2024.

Analyst Wamsi Mohan wrote that the company has a “rich catalyst path with defensive cash flows”.

“This appears priced in but in today’s volatile market, it’s a tricky setup,” wrote analyst Erik Woodring. The firm recommends buying on post-earnings weakness, given an upcoming Apple event focused on AI.

Coming week, the tech giant is expected to roll out its second-quarter earnings and BofA is positive on Apple’s solid margins and growing services revenue.

Although BofA gave a warning stating a negative demand climate is bound to occur in the lower quarter forecast, which might cause shares to decline.

Apple’s stock price went down by 6.5 percent within the last five days and 14 percent year-to-date, but BofA is positive about the tech giant’s future.

The tech giant’s under-performance is said to be due to regulatory constraints, growth concerns particularly in the Chinese market and an expected lack of strategy regarding artificial intelligence.

Apple’s price target was brought down by Morgan Stanley from $220 to $210 due to the anticipation of a negative earnings report estimate. But the company advises purchasing on the pullback following earnings, taking into account a forthcoming AI-focused Apple event.

Wall Street is said to be not so positive even while Apple makes up 5.7 percent of the S&P 500 and is still a significant stock in benchmark market indices.

But after the year-to-date decline, some strategists find it appealing. As per the current report by Cantor Fitzgerald, the valuation has reached a far more fair level.

Eric Johnston, Cantor Fitzgerald’s head of cross asset and equity derivatives, added that “with inflation running hot and yields pushing higher, we believe this environment will attract capital to less rate-sensitive stocks and given AAPL’s underperformance, we believe it will be a major beneficiary from this rotation.”