Piper Jaffray Reiterates on Apple on Expected Return To Earnings Growth In CY14

In a report published Tuesday, Piper Jaffray analyst Gene Munster reiterated an Overweight rating and $640.00 price target on

. In the report, Piper Jaffray noted, “Results were largely as expected given the late quarter guidance update post the iPhone 5S launch. More importantly, the company guided Dec-13 revenue to $55-58 billion and gross margins to the midpoint of 37.5% excluding the unexpected change in deferred revenue policy. The revenue mid-point was ahead of our expectation and the adjusted gross margin was in-line. The overall trends in the business have stabilized, and we expect earnings to be essentially flat y/y in Dec-13 and up 8% in Mar-14, marking the first earnings growth quarter in 5 quarters. We are modeling revenue growth to go from 5% in CY13 to 8% in CY14, and EPS growth to go from down 10% to up 15%. Our model does not reflect new product categories (likely TV & Watch) that were hinted to again on the earnings call. Reiterate $640 price target.” Apple closed on Monday at $529.88.