Investors should buy Apple shares because its earnings this year will come in above Wall Street's expectations, according to Bank of America Merrill Lynch, which reiterated its buy rating on the smartphone maker.
Apple's supply chain is "enthusiastic about iPhone 8. ... We met with several suppliers that are excited about the upcoming launch of the iPhone 8," analyst Wamsi Mohan wrote in a note to clients Wednesday.
"All three models are expected to have [a] front and back glass cover and wireless charging. The frame is expected to be stainless steel in the OLED [display] model and aluminum in the other two. Given the significant content increase, in our opinion, AAPL will raise the ASP [average selling price] significantly for the iPhone 8."