Buy Apple (AAPL) Now, Piper Jaffray's Munster Says; Sees Over 50% Into iPhone 7 Launch

Piper Jaffray analyst Gene Munster is telling clients to buy Apple (NASDAQ: AAPL) shares into the Jan 26 earnings print and over the next 6 months, saying he expects the stock to react similarly to past number change cycles (i.e., iPhone 5 and 6), and experience P/E multiple expansion.

"We believe shares of AAPL could achieve upside of over 50% from current levels by the iPhone 7 launch in September," he commented.

He added, "In our view, valuation is attractive with the pullback in AAPL over the past two months driven first by concerns around supply reductions followed by the macro market decline leaves shares trading at historically low P/E levels. While macro issues (falling oil prices, China's economic/currency problems, and the instability in the EU) are wild cards, the company specific setup for shares of AAPL remains favorable."

The firm maintained an Overweight rating and price target of $179.

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 $96.30 yesterday.

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