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Fund managers still leery of Apple stock, believe shares could slide further before rebounding

Investment managers on Wall Street believe that Apple stock is currently undervalued, but they're also reportedly concerned that shares of the company could drop even further before their eventual rebound.

Portfolio managers interviewed by the Financial Times indicated that investors remain nervous about Apple's future prospects in China, as well as the anticipated launch of the "iPhone 6s." Even with those concerns, fund managers concede that Apple is trading at a discount when compared to the rest of the market.

Those managers are still waiting, however, over concerns that shares of Apple could continue to dip heading into the debut of the next iPhone. There is a fear that despite the company's recent slide, it may not have yet bottomed out.

Accordingly, most investment banks on Wall Street tracked by AppleInsider continue to advise that investors buy in. In recent weeks, a number of firms have reiterated their price targets and "buy" recommendations, including Macquarie Securities, RBC Capital Markets, FBR Capital Markets, and UBS.

Apple did receive one high-profile downgrade earlier this month, however, when Bank of America Merrill Lynch reassessed the company's stock to "neutral."

Shares of Apple have continued to slide since the company's June quarter results, which fell short of the market's lofty expectations even though they were a new record for the iPhone maker. There has also been concern that the Chinese market could prove soft for Apple, especially in the face of low-cost competitors like Xiaomi and Huawei.

Apple, however, remains bullish, not only for future iPhone growth, but also for its near future in China.

Apple Chief Executive Tim Cook noted during his company's last quarterly earnings report that his company still saw 90 percent growth in China last quarter. And worldwide, just 27 percent of the iPhone installed base has upgraded to the latest generation iPhone 6 series.

"We view that as a very bullish sign on the future, and there's a lot of headroom left for upgraders," Cook said, not so subtly suggesting that the anticipated "iPhone 6s" series has plenty of growth opportunities.