The Banc of America has begun offering coverage of Apple stock, which it rates as a "Buy" with a $160 per share target price.

Analyst Scott Craig told investors: "We believe there is a significant amount of upside possible in Apple's stock." The analyst cites continued marketshare gains for the Mac and strong sales of iPods and iPhones as reason for his positive rating on the stock.

"We believe the potential (for growth) is being underestimated," he said, pointing out that investor focus on initial iPhone sales has ignored the point of the company's new way of accounting for sales of this device. He points out that as Apple is booking revenues from the device across two years, it now has a source of regular repeating income.

The analyst does warn that component prices and iPhone sales may impact his valuation in future.