The Launch Of Apple's VR Headset Could Be The Catalyst For Apple Bulls.

The stock of Apple AAPL +1.60% is proving to be a puzzle for investors. For investors who are looking for a boost in the share price in the upcoming summer when the iPhone maker's long-awaited virtual reality headset is finally released, they might have to wait until then. 

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The market capitalization of Apple (ticker: AAPL) appears to be the strongest among the major U.S. technology companies in some ways. In addition to not having to implement mass layoffs, the company is poised to benefit from a rebound in Chinese demand as well. The company, however, is still slowly collecting bearish views from Wall Street analysts, concerned about consumer spending, which is affecting Apple's share price. 

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Apple bulls are feeling the pressure on their shoulders to explain why they believe the stock will continue to rise.

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“Our recent bullishness on Apple has been somewhat criticized by investors, specifically by those who point out that Apple's current valuation is at a premium compared to its peers in the big tech sector,” Evercore analysts wrote in a research note published on Tuesday. 

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The analysts at Evercore have set a target price of $190 on Apple, which on Tuesday, traded around $152 in pre-market trading.

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The Evercore analysts claim that Apple's high operating efficiency gives it the ability to justify a premium over big tech rivals, but that may not be enough in a market that is concerned about the Federal Reserve's monetary policy and how it will affect tech valuations. In order for Apple stock to get back on track, another piece of hardware - a virtual-reality headset - needs to be successful in order to restore optimism around the company's stock. 

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Despite some objections from the company's designers, Apple's CEO Tim Cook has decided to set a date for the launch of a VR headset this year, a recent report in the Financial Times cited people familiar with the matter as saying.

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Wedbush analysts wrote in a research note that a headset launch that happens in the summer could be one of the best ways to "move the needle" on Apple stock at the time. According to the Financial Times, Apple is only expecting to sell around one million units of the headset in its first month, but a successful launch would be a sign that the company under Cook is capable of tackling one of the most difficult challenges in the consumer electronics industry.

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Despite Trade Algo's request for comment early on Tuesday, Apple has yet to respond to the request for comment. It is not uncommon for Apple not to comment on products that are unannounced, and its headset plans have not been publicized. 

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