Buy Apple on iPhone 8 'super cycle' ahead, analyst says

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

Investors should buy Apple shares on more evidence the next iPhone sales will beat expectations, according to Instinet, which reiterated its buy rating.

"Our analysis of App Store data and recent Asia Tour insight fuel our conviction that the iPhone 8 super cycle will be significantly larger than consensus anticipates," analyst Jeffrey Kvaal wrote in a note to clients Friday. The "large iOS [user] base makes consensus FY18 iPhone estimates look meager."

Apple's iOS is the mobile operating system used by iPhones.