(This story is for CNBC Pro subscribers only.) Apple's copious cash on hand to repurchase its shares makes it an attractive stock to own even as the coronavirus wreaks havoc on its supply chain and global iPhone demand, according to Bank of America. The firm said the impact of the coronavirus could delay the launch of the 5G iPhone and the iPhone SE2, but the technology giant is still worth owning given an imminent buyback authorization, in Bank of America's view. "We reiterate Buy on large cash balance/optionality, expected new buyback authorization in April," Bank of America research analyst Wamsi Mohan said in a note to clients on Wednesday. Apple has more than $207 billion in cash on hand through the end of the last quarter. The company bought back $20 billion in stock during the last quarter alone. The spread of the fast-spreading coronavirus has roiled markets in recent weeks on worries that factory closures in China will disrupt supply chains. Apple stock is down more than 10% in the past month and briefly dipped into bear market territory last month. Bank of America expects labor shortages and lower productivity will cause lower iPhone production in February and March, and lowered its 2020 sales estimates for iPhones, iPads, Mac, Apple Watch and accessories. Mohan also said the disruption could push back the launch of the 5G phone, which is slated for September. Despite the coronavirus headwinds, Bank of America has a buy rating on Apple's stock. The Tim Cook-led company is expected to have a new buyback authorization in April, its usual time for such announcements. Bank of America lowered its 12-month price target on Apple's stock to $320 per share from $350 per share, implying about 12% upside from the stock's closing price of $285.34 per share on Tuesday. Shares of Apple are down nearly 3% in premarket trading on Wednesday. – with reporting from CNBC's Michael Bloom.
