$AAPL Rallies 7.2%, Analyst Calls Sell-Off "Insanely Insane"

$AAPL$AAPL's sell-off was "insanely insane," according to Topeka Capital analyst Brian White. Mr. White told his clients on Monday that Apple's 24.8 percent decline in the last two months has neither rhyme nor reason, and helped by his comments, the stock rallied 7.21 percent, a huge one-day jump that left the stock at US$565.73 per share, up $38.052 (+7.21 percent), on strong volume of 29.4 million shares trading hands.

The markets as a whole rallied on Monday, with all three major indices showing gains. Europe rallied earlier in the day, and this heavenly cloud of optimism appears to be based on optimism that politicians in the U.S. will come up with a deal to avoid the fiscal.

Mr. White maintained his $1,111 price target on AAPL, making him the bull with the balls in a ballroom full of bulls, as well as his "Buy" rating on the stock. According to BusinessInsider, he said:

In our view, the sell-off in Apple's stock over the past eight weeks has gotten to the point of being "insanely insane" given the depressed valuation (CY13 P/E of 7.6x ex-cash), new blockbuster products for the holiday season, the attractive long-term growth opportunities that lie ahead and the Company's ability to distribute significant cash flow to investors. Those investors that have missed Apple or have been under-weight the stock, now have another opportunity to buy Apple before sentiment takes a turn for the positive during what has historically been the strongest quarter of the year for the stock.

Barron's reported that Merrill Lynch Scott Craig cut his estimates for $AAPL, and lowered his price target for the stock to $780 from $840. He told his clients that Apple will sell fewer iPhones than he had originally modeled, but that sales of the device will help out Apple's gross margins anyway.

Mr. Craig reiterated his "Buy" rating on the stock.

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.