Buy Apple as iPhone 7 demand is still higher than supply, Piper Jaffray says

A customer is trying an iPhone 7 in an Apple Store.
Zhang Peng | LightRocket | Getty Images

Piper Jaffray's Gene Munster reiterated his overweight rating on Apple shares due to strong global demand for the iPhone 7, according to the firm's recent survey of Apple stores.

"IPhone inventory [is] tight in US & China ... At this point, we believe it's unlikely iPhone reaches supply demand equilibrium by the end of the Dec-16 quarter," he wrote in a note to clients Friday.

"We remain positive on AAPL given our continued belief in a strong iPhone 7 cycle and the iPhone 10 [10 year anniversary edition] potential next year."

Munster reiterated his Apple price target of $155, representing 41 percent upside from Thursday's close.