We upgrade FRT from O-PF to BUY following a 9% share price correction in the past month. Valuation is attractive with a three-year PEG of 0.7x, based on our unchanged forecasts. We believe the recent share price underperformance was partly driven by investor concerns over iPhone GPM following weak Q4 2018 results. However, in our view, this was an overreaction as we expect to see an improvement in iPhone GPM starting H2 2019.