Canaccord Genuity Reiterates on Apple

In a report published Tuesday, Canaccord Genuity analyst T. Michael Walkley reiterated a Buy rating and $580.00 price target on Apple (NASDAQ: AAPL).

In the report, Canaccord Genuity noted, “Apple reported strong September quarter results above its previous guidance range and both our and consensus estimates. Consistent with our expectations Q1/F2014 sales and gross margin should benefit from strong holiday sales and a favorable iPhone and iPad product mix, Apple issued strong December quarter guidance consistent with our above-consensus estimates after accounting for $900M in incremental deferred software revenue. For F2014/15, we believe a TD-LTE iPhone launch with the world's largest carrier China Mobile could bolster March quarter sales and offset some of the post-Holiday seasonal trends in Western markets, and we believe Apple is well positioned to exceed forward consensus estimates despite our expectations for more aggressive iPhone 5c pricing to drive international volumes in C2014. We also believe the continued large share buyback program should contribute to a return to EPS growth in F2014/15. We reiterate our BUY rating and $580 price target.”

Apple closed on Monday at $529.88.