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Wall Street has a new favorite Apple derivative play

A customer touches the screen of an iPhone 7.
Chesnot | Getty Images

JPMorgan told clients to buy Lumentum shares Tuesday because the firm will provide augmented reality for the iPhone later this year.

This comes a day after Goldman Sachs mentioned the company's technology as a possible "killer app" feature on Apple's next smartphone.

Lumentum shares are up 30 percent this year and more than 115 percent in the previous 12 months as of midafternoon Tuesday.

Here is what JPMorgan's Rod Hall wrote on the company:

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