Investors should buy Apple shares on the prospect of a large increase in its capital return to shareholders, according to RBC Capital Markets, which reiterated its outperform rating.



"Most [investors] think upside is around $140-150 at this junction; we think the surprise could be a material uptick in capital allocation that could change this narrative," analyst Amit Daryanani wrote in a note to clients Sunday. "We believe the fundamental reality remains that AAPL's valuation is materially sub-par to what we anticipate is its long-term revenue and EPS potential."

