The Apple logo is displayed at one of the company's stores in Hong Kong.

Evercore ISI is getting bullish on Apple. The firm initiated coverage of the tech giant with an "outperform" rating on Wednesday after the bell.

Despite all the recent issues swirling around the company, Evercore ISI said it still expects the stock to continue to rise and gave Apple a price target of $205.

"We see several catalysts that should enable the stock to grind higher from current levels," analyst Amit Daryanani said.

"Apple stock should continue to outperform the market driven by strong [free cash flow] generation, ability for outsized capital allocation, and a growing iOS install base that generates sustained and recurring FCF growth."

The firm did, however, warn investors to keep an eye on the U.S.-China trade talks.

"Thus far, Apple has managed to avoid tariffs on finished products, but it's possible they will be impacted by future trade actions as Sino-American trade talks have broken down in recent weeks," the analyst said. "The impact of tariffs will depend on both the applied tariff rate and Apple's ability to pass costs onto customers. In our worst case scenario (25% tariffs, no cost passed on), we estimate Apple's 2019 [earnings per share] could fall by ~21%."

Earlier this week, Apple unveiled a slew of new products at its much anticipated Worldwide Developers Conference. At the same time it was also reported that the Justice Department would have jurisdiction over the company for any probe of the company's practices over anti-competitive behavior.

Shares are down more than 12% in the past month.