Deutsche Bank: Don't Buy the Watch Hype, Apple a 'Hold'

Watch, expected to be revealed next week, "has limited ability to move the needle," according to a new report from Deutsche Bank. The Deutsche analysts said that revenue from the Watch will be $26 billion in three years, less than 10 percent of the company's overall sales.

While Deutsche Bank does view current estimates on wearable adoption as low, the analysts pointed to Apple's size as the number 1 factor that the Watch is a non-event. It estimates that just $1 to $1.50 of EPS will be driven by the Apple Watch in 2018.

Deutsche Bank concluded that there are "limited catalysts to drive the shares higher over the next few quarters." Instead, the company will rely on iPhone sales to drive revenue and EPS.

The analysts have a $110 price target on the company, nearly $20 below current price.