Pro Analysis

Buy Apple as it will top earnings expectations on iPhone strength, Credit Suisse says

An Apple employee hands over Apple iPhone 7 phones on the first day of sales of the new phone at the Berlin Apple store on September 16, 2016 in Berlin, Germany.
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An Apple employee hands over Apple iPhone 7 phones on the first day of sales of the new phone at the Berlin Apple store on September 16, 2016 in Berlin, Germany.

Investors should buy Apple shares because strong iPhone sales will drive better-than-expected financial results, according to Credit Suisse, which reiterated its outperform rating.

"We see our trip to Asia, recent news flow, Dialog's preannouncement, and the Galaxy Note 7 issues all giving us further confidence that this iPhone 7 cycle may prove stronger than expected," analyst Kulbinder Garcha wrote in a note to clients Wednesday.

Apple is scheduled to announce fiscal fourth-quarter results Oct. 25.