Apple Inc. NASDAQ:AAPL’s price to earnings multiple could expand as it kicks off the new product cycle, according to analysts at Cantor Fitzgerald. They call this year’s cycle another “super cycle” and likened it to the 2001 product cycle in which the iPod was introduced, the 2007 cycle which brought the iPhone to market, and the 2010 cycle in which Apple released the iPad.

Apple Inc. Hits Its Next "Super Cycle": Analyst
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Did investors take profits in Apple?

In a report dated Sept. 15, 2014, analysts Brian White and Isabel Zhu said many investors seemed to be taking profits heading into Apple’s event last week. They think that view is shortsighted, however, and may end up being “costly” because they think this year’s product cycle is another “super cycle” and note that it extends into next year because the Apple Watch won’t be up for sale until then

They say consumers’ appetite for the iPhone 6 Plus appears “insatiable,” as preorder shipment times continue to extend. They think the Apple Watch will be a “home run” and garner record first-year unit sales volume for the company. They also believe it will provide Apple with a foothold in what they expect to be a large wearable technology market.

The analysts don’t think Apple is done with entering new product categories. They also think that the company’s expertise in designing products and services that work together will end up being “invaluable.”

Apple’s P/E multiple may expand

The Cantor Fitzgerald team notes that Apple’s price to earnings multiple has contracted by more than 50% compared to the S&P 500 Index. They think that might change though, and they maintain their Buy rating and $123 per share price target on the company.

They believe that last week’s product unveilings offer Apple an even more diversified revenue base while also improving the stickiness of its ecosystem and providing a “stronger platform for accelerated momentum for new product categories going forward.

The analysts also think investor concerns about competition, a lack of innovation, a narrow portfolio, CEO Tim Cook’s leadership and a disregard for shareholders are “exaggerated.”

Shares of Apple slumped by as much as 1% in morning trading today.