Investors should take the opportunity buy shares of Apple ahead of the holidays, JMP Securities analyst Alex Gauna said Monday.
"We believe Apple is heading into another banner holiday season" Gauna said in CNBC "Squawk Alley" interview. "Out of the chute, $13 million in sales from the iPhone 6S, once again, another bar raised for the industry in terms of unparalleled smartphone performance and we think there is just plenty of runway out there for Apple to continue taking share," he said.
The tech giant's stock is only up about 1.1 percent this year and on track for its worst year since 2008.
Nonetheless, Gauna said the company's shares typically perform better during the "S cycle" of its latest iPhone, thus making it a good investment opportunity.
"[In the S cycle], they've ironed out some of the kinks — in this case the stronger chassis — and the forced touch. A lot of things happen in the S rev of these phones and again, we're still only one year into selling in China," he said.
Gauna added that Apple also has room to take further market share from its competitors both in the U.S. and abroad.
"In the U.S. they're beyond 44 percent market share. If you want to look at how far that might be able to go, you can look at Japan where they have a 60 percent market share. There are a lot of opportunities on every front and we think Apple is doing a great job in executing those opportunities."
Apple's shares were slightly lower midday Monday.