Apple Bears Missing The Big Picture, Says Mizuho's Abhey Lamba

Mizuho's Abhey Lamba holds a Buy rating on Apple Inc. (NADSAQ:AAPL) with a $120 price target. What's the upside for shares? According to the analyst, it's the "bigger picture."

Lamba told CNBC that while investors can extrapolate short-term figures into "eternity," the iPhone franchise is still "intact" over the long-run. "People are still buying the new iPhone; if not every two years, every two and a half years, or maybe three years...and they're buying other Apple products."

When asked if Apple's March quarter could be a bottom for the stock, Lamba said it's possible. "We recently upgraded the stock thinking that after we go through the March quarter, maybe June...as we get into the second half of this calendar year the stock should start its upward journey from here."

Lamba said over the next few quarters, he'll be watching data related to the iPhone upgrade program. "They have a really solid franchise, which is what we're banking on for the stock to turn."

Investors Are Missing The Forest

In a recent note, Lamba explained why he upgraded the stock from Neutral to Buy. Mizuho's survey of over 1,000 customers showed Apple still has "loyal" users who should upgrade their iPhones over the next few years.

Analyst Abhey Lamba explained that Mizuho’s “survey of 1000+ consumers indicated that Apple continues to command a healthy eco-system with a large number of loyal customers who are likely to upgrade phones over the next few years.”

Investors could be "missing the forest" by focusing on quarterly data points, he added.

Apple shares are near $100 entering earnings.