Could Apple Watch Really Be Worth $26 Billion in sales?

The Apple Watch may be a $26 billion business by 2018, Deutsche Bank analyst Sherri Scribner predicted in a note Thursday.

However, she only reiterated a hold rating on Apple Inc.'s stock, saying a limited impact from the Watch and Apple's heavy reliance on the iPhone offer "limited catalysts" to drive shares higher over the next few quarters.

Her $110 price target implies a 14% share-price decline from Apple's $128.54 closing price on Wednesday.

To be fair, Scribner is one of the most bearish Apple analysts on Wall Street. The average rating on Apple's stock among more than 40 analysts is overweight, and the average price target is $134.92, according to FactSet.

While Apple will undoubtedly outsell all rival smartwatches this year, according to Scribner, she expects the Watch to remain a minor product category in relation to the iPhone, comprising 10% or less of sales and EPS by 2018. Shares of Apple traded up 0.3% in premarket trade.