Rosenblatt re-initiates coverage on Apple (NASDAQ: AAPL) with a Buy rating and a price target of $140.00.

"We are transferring coverage on Apple with more research from supply chain perspectives," analyst Jun Zhang commented. "We are reinitiating with a Buy rating as we think expectations have been lowered and China will still be the growth driver in 2H15."

He added, "In our view, the current expectation for iPhone 6S/Plus has been lowered due to the concerns on production delays, China’s slowing macro economy, and the somewhat meaningful upgrades on the iPhone 6S. In our previous note back in July, we pointed out that the iPhone sentiment might become negative and investors would want to stay on the sidelines until they see iPhone 6S initial sales data, but we still remain optimistic on iPhone sales in 2H15, especially when expectations are lowered. In fact, we think the new, bigger iPad would help Apple further expand into the enterprise market, but the revenue contribution might not be meaningful and remain weak."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $112.31 yesterday.