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:

More In Pro News and Analysis

CNBC ProCNBC in 5 minutes: Here are all the stock calls made on CNBC today
CNBC ProHow to invest behind the sweeping climate and health care package that could soon become law
CNBC ProWarren Buffett's stock shopping spree slows down even during market's big pullback. Here's why