Apple (AAPL) traded around $317 on Aug. 20, up nearly 16% in 2026, though still about 8% below its July record high of $344.57. The stock gained 4% over the two prior sessions as investors digest a leadership change that could reshape the company’s direction.
Tim Cook will step down as CEO on Sept. 1 and hand the role to John Ternus, Apple’s longtime hardware chief. Cook becomes executive chairman and stays involved in areas like government relations.
Bank of America analyst Wamsi Mohan reiterated a Buy rating and a $380 price target on the stock. That implies around 20% upside from Apple’s Aug. 20 close of $316.83.
The bank’s note wasn’t just a vote of confidence in the transition. It laid out what might actually change under Ternus.
Cook’s Apple was built on discipline and scale. The company generated $32 million in value every hour over his 15-year run. Free cash flow rose from $33 billion in fiscal 2011 to nearly $137 billion on a trailing-12-month basis.
Under Ternus, BofA sees a shift in risk appetite. That could mean heavier R&D investment, bigger capital expenditures, and more aggressive acquisitions, none of which were hallmarks of the Cook era.
BofA also flagged Apple’s move away from its net-cash-neutral target as an early sign that capital deployment could accelerate under new management.
The bank sees Ternus pushing Apple into new territory, including AI glasses, camera-equipped AirPods, smart rings, home automation, and robotics.
Apple’s position isn’t weak going into this. It controls the hardware, chips, operating systems, privacy stack, and a billion-unit installed base. On-device AI plays directly into those strengths.
Still, BofA noted that Apple’s $4.6 trillion market cap makes it harder for new products to move the needle the way they once did.
Apple’s most recent quarter backed up the bull case on fundamentals. The company reported EPS of $2.02, beating estimates of $1.89. Revenue came in at $109.42 billion, up 16.4% year-over-year, and above analyst forecasts.
iPhone sales hit a June-quarter record of $54.25 billion, up nearly 22%. The iPhone 17 series outsold its predecessor by 16% in its first full quarter.
Apple also paid a quarterly dividend of $0.27 per share on Aug. 13, representing a $1.08 annualized yield of 0.3%.
Analyst sentiment across the street is broadly positive. Wells Fargo holds an Overweight rating with a $350 target. Wedbush rates it Outperform with a $400 target. The consensus sits at “Moderate Buy” with an average target of $330.53.
Not everyone is onboard. Deutsche Bank cut Apple from Buy to Hold this week. Phillip Securities moved to Moderate Sell on Aug. 3.
App Store commission revenue reportedly dropped 18%, adding a layer of uncertainty around Services growth. The CEO transition also carries execution risk as Ternus decides how aggressively to spend on AI.
iPhone 18 Pro is expected to be unveiled in September.
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