Apple’s (AAPL) inventory has been hit hard because the Trump administration unveiled sweeping tariffs final week, however Financial institution of America analysts stated that would current a possibility for buyers to purchase it at a reduction.

In a observe to purchasers Tuesday, the analysts reiterated a “purchase” score and worth goal of $250, barely above the common goal of $242 compiled by Seen Alpha. The inventory was down about 3% at $176.45 in latest buying and selling, and has misplaced roughly a fifth of its worth since final Wednesday’s tariff announcement amid worries about how the tariffs might have an effect on the iPhone maker.

Regardless of steep tariffs on China, the place Apple manufactures about 90% of its {hardware}, the corporate nonetheless has “many choices to mitigate draw back danger,” BofA stated. These choices might embrace sourcing extra iPhones from India, elevating costs, and introducing new, higher-cost merchandise, the analysts stated.

«In our view, the pullback presents a very enhanced shopping for alternative for buyers to personal a high-quality identify,” the analysts stated. They added Apple has a secure money stream, and will stand to learn from better adoption of synthetic intelligence options on its gadgets. 

Apple can also be reportedly in search of an exemption from the tariffs, just like the one it obtained in the course of the first Trump administration. JPMorgan analysts stated final week that if Apple does not get an exemption, it could face strain to lift costs to offset the tariff influence.