UBS calls Apple 'the Shake Shack of technology,' advises investors to buy in

In a research note issued this week, a copy of which was provided to AppleInsider, analyst Steve Milunovich declared that Apple is "the Shake Shack of technology." In his view, both Apple and Shake Shack take "the oblique approach to creating profits," he said.

UBS analyst Steve Milunovich believes Apple's quick reversal on artist royalties for Apple Music is a sign of Tim Cook's smart leadership.

To drive home his point, Milunovich quoted Shake Shack founder Danny Meyer, who argued that companies like his make "tougher, more expensive choices" that ultimately resonate with consumers, and create a willingness to pay more for products.

"I want to buy food that makes me feel good to be buying it," Meyer said. "I want to do business with companies that make me feel good to be doing business with them. We've reached a critical mass where there's just no going back."

From Apple's perspective, Milunovich cited the company's quick response to critics, including megastar Taylor Swift, who slammed the company for not paying artist royalties during the three-month free trial period for Apple Music. The Cupertino, Calif., company quickly changed course, and in response, as a show of good faith, Swift allowed for her blockbuster album "1989" to be included on the streaming service, while it remains absent from competitors like Spotify.

"The company's quick reversal —  one that is hard seeing (late Apple co-founder Steve) Jobs making —  probably enhanced its brand," Milunovich wrote.

UBS has maintained its "buy" rating for AAPL stock, with a 12-month price target of $150.