Apple (AAPL 0.41%) is one of the most dominant companies in the world, and the world's most valuable brand, according to several research outlets.

However, the company is far from immune from the current turbulence around tariffs and the broader macroeconomic headwinds. Much of Apple's components come from China, and the company was granted a tariff exemption by President Donald Trump. However, China is also a major consumer market for the company, and a weakening Chinese economy or backlash against U.S. brands there could also have negative implications for its business.

With the company set to report fiscal second-quarter earnings next Thursday, Apple stock could be at a pivotal moment as the stock has been exceptionally volatile in recent weeks. Ahead of that report, one Wall Street analyst weighed in on the stock, seeing better times ahead.

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Huatai Securities calls Apple a buy

In a note last Tuesday, Huatai analyst Xie Chunsheng initiated coverage of the stock with a buy rating and a price target of $254, giving it an implied upside of 21%. Chunsheng noted that Apple earns a high market share in the premium hardware sector and expects it to grow its market share in hardware, building on its flywheel model where hardware gains lead to software revenue, which grows margins.

The analyst also expects shareholders to benefit from continuing buybacks and dividends.

Is Apple a buy?

While Apple seems to have dodged a bullet in the trade war, a global recession or economic slowdown would also be a problem for the company as its phones are ultimately discretionary purchases. In a down economy, consumers would delay new purchases or trade down.

Apple stock also remains pricey at a price-to-earnings ratio of 33. The tech giant could gain on next week's earnings report as consensus estimates call for revenue to increase 4% to $96 billion and for earnings per share to increase from $1.53 to $1.61.

Personally, I'd rather stay on the sidelines as I think the upside to the stock is limited, but the narrative around Apple stock could change quickly.