Buy Apple because suppliers are seeing rising component orders for the next iPhone, analyst says

Customers count money while purchasing iPhone 6 smartphones during the sales launch at the Apple Inc. store in Palo Alto, California.
David Paul Morris | Bloomberg | Getty Images

Investors should buy Apple shares as smartphone suppliers are pointing to better-than-expected production volume for the next iPhone, according to Pacific Crest, which reiterated its overweight rating.

"We continue to recommend owning AAPL. Recent checks at suppliers indicate strong initial indications of component orders for the coming iPhone cycle, which prompts an increase to our unit estimates at the high end of the iPhone lineup," analyst Andy Hargreaves wrote in a note to clients Monday.