Sterne Agee Reiterates Buy Rating, $840 PT on Apple

In a report published Monday, Sterne Agee Group reiterated its Buy rating and $840.00 price target on Apple

. Sterne Agee noted, “AAPL will report its Sept. quarter this Thursday, October 25, after the close. Based on our supplier checks, we anticipate a modest revenue and EPS beat but believe guidance will likely be vintage conservative. The key reason being higher iPhone 5 quality control costs that AAPL will likely partially absorb. Despite near-term gross margin concerns, our fundamental view remains upbeat as we believe iPhone 5 and iPad mini will drive the industry's most powerful product cycle.” Apple closed on Friday at $609.84.