Buy Apple because of an innovative new iPhone ahead with '3-D sensing' functionality, Cowen says

Apple iPhones 7 and 7 Plus are seen in an Apple store.
Sefa Karacan | Anadolu Agency | Getty Images

Investors should buy Apple shares in anticipation of the next iPhone's launch later this year, according to Cowen, which reiterated its outperform rating.

"Field work suggests stabilized iPhone supply for FQ2:17 (Mar) .. [is] well supportive of our current estimates. … While supply for the Jun Q is down slightly Y/Y - not great, but also largely meaningless w/new launch coming," analyst Timothy Arcuri wrote in a note to clients Thursday. "For the 2017 iPhone 10/X, we continue to gather more details about

"For the 2017 iPhone 10/X, we continue to gather more details about display, form factor, fingerprint sensor, baseband modem, wireless charging, and facial/gesture recognition."

Here is what the analyst expects will be in the upcoming iPhones later this year.

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