Piper Jaffray analyst, Michael Olson, reiterated his Overweight rating on shares of Apple (NASDAQ: AAPL) noting that there has been an ongoing drumbeat of concern around the trajectory of the stock as the iPhone X launch moves into history. While shares have underperformed in between cycles in the past, the analyst believes "an elongated iPhone cycle in FY18, followed by a wider array of iPhone X "offspring" in Fall-18, along with growing awareness and interest in augmented reality (fueled by developers populating app store with new use cases and, longer-term, addition of rear facing 3D sensor), will all push out the need for Apple to answer the question of "what's next?"".

The analyst believes AR is potential catalyst for ongoing services growth and stated "while the inclusion of rear facing 3D sensors on new models of iPhone in Fall-18 remains uncertain, further AR innovation could drive a multi-year boost to app store revenue, as developers create new AR experiences and iPhone owners populate their devices with this content."

No change to the PT of $200.

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Shares of Apple closed at $169.48 yesterday.