UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Apple Following Strong September Q Results, December Q Guidance

In a report published Tuesday, BMO Capital Markets analyst Keith Bachman reiterated an Outperform rating on Apple AAPL, and raised the price target from $508.00 to $600.00. In the report, BMO Capital Markets noted, “Apple delivered a very strong September Q and December Q guide, especially after normalizing the financial representation. We had projected December Q revenue to be around $54 billion (consensus of $55.7 billion) and Apple's revenue guidance is in the $55-$58 billion range. Gross margins may be viewed as disappointing, but we doubt this will last. The accounting change for deferred revenue could have up to a 100 bp impact on gross margins on a q/q basis, as we describe herein.” Apple closed on Monday at $529.88.