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Pro Analysis

Buy Apple due to ‘pent up demand’ for the iPhone 8, Credit Suisse says

An employee assists customers looking at an Apple iPhone in Khimki, Russia.
Andrey Rudakov | Bloomberg | Getty Images
An employee assists customers looking at an Apple iPhone in Khimki, Russia.

Investors should buy Apple shares because of growing optimism over the next iPhone "super cycle," according to Credit Suisse, which reiterated its outperform rating.

"Over the course of the next year, we continue to believe that an iPhone 8 super cycle (starting with 3 models, one of which will be OLED [display]) should drive up replacement rates and drive new customers," analyst Kulbinder Garcha wrote in a note to clients Friday. "We continue to highlight a degree of pent up demand from iPhone installed base ahead of the major iPhone 8 super cycle as well as continued strong mix shift towards services."