"We now believe it is a compelling value, especially as the holiday shopping season is about to begin," he writes in a brief research note. "We think AAPL will benefit from a number of recent product refreshes, including its key iPhone and iPad offerings. We also think the new iPad Mini will contribute to share gains. We acknowledge some slip-ups and management changes of late, but see the fundamental story as intact. We also believe AAPL could decide to allocate additional capital to dividends and buybacks."
Kessler maintains his $700 price target on Apple shares.
AAPL is up 83 cents, or 0.2%, to $543.72.