Apple (AAPL) Stock Can Continue Higher on Improving Supply, Strong Demand for iPhone 6/6+ - Piper Jaffray

In a note to clients Tuesday afternoon, Piper Jaffray analyst Gene Munster commented on recent supply and demand for Apple's (NASDAQ: AAPL) latest iPhone 6/6 Plus. Munster said based on their latest field work, demand remains strong and supply is improving.

"Our survey work on consumer demand for the iPhone suggests that demand has increased since the phone launched in September, while our store checks suggest that supply has improved to over 75% availability over the past week," Munster said.

He added, "We believe that the iPhone 6 upgrade cycle remains extremely strong and believe that some of the delay in supply meeting demand could push demand to March. We continue to believe shares can work ahead of Dec-14 earnings and the launch of the Apple Watch in the first half of next year."

Munster noted that a recent survey of 1,004 US consumers looking to purchase a smartphone in the next three
months, 50% said they plan on purchasing an iPhone vs. 47% in September, following the iPhone 6 announcement. As a comparison, the analyst noted that demand for the iPhone decreased from 50% in Sep-13 to 44% in Dec-13 following the iPhone 5S launch.

The firm reiterated an Overweight rating and price target of $135 on Apple.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $112.54 yesterday.

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