After nearly 15 years at the helm, Tim Cook will step down as Apple’s (AAPL) CEO on September 1 to become executive chairman, handing the leadership reins to longtime executive John Ternus. Bank of America (BofA) (BAC) is bullish on the move, believing it might launch the consumer electronics giant into “a new era of devices.”
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BofA Remains Bullish on Apple
Following the announcement, BofA’s five-star analyst Wamsi Mohan reaffirmed his Buy rating on AAPL and set a price target of $325, predicting about 19% upside in the months ahead.
Mohan is in the top 0.33% of Wall Street analysts tracked on TipRanks, ranking 40 out of more than 12,000. The analyst boasts a success rate of 65% and an average return of 36.80%.
‘2027 Could Be a Big Product Year’
As of Tuesday morning, Apple’s shares were up less than 1% since the start of the year, even as its spring 2026 product refresh failed to cheer investors. This comes as Apple’s AI strategy and preparedness have emerged as a source of concern, with some arguing that investors are more likely interested in the launch of an AI-upgraded Siri digital assistant.
Mohan has described incoming CEO Ternus — who joined Apple’s product design team in 2001 and became a vice president of hardware engineering in 2013 — as “a product-oriented leader with years of deep experience in Apple’s hardware design.”
This could usher Apple into a new product era, including AI-enabled wearables such as augmented reality glasses and smart home devices, the analyst contended. He added that “2027 could be a big product year” for Apple as it marks the 20th anniversary of the iPhone.
Sales from the flagship smartphone and services such as App Store, iCloud, Apple Music, and Apple TV+ remain the biggest source of revenue for the consumer electronics giant, as the image below shows.
Is Apple Still a Good Stock to Buy Now?
On Wall Street, analysts continue to hold a Moderate Buy consensus rating on Apple’s shares. This is based on 16 Buys, eight Holds, and one Sell recommended by 25 analysts over the past three months.
However, the average AAPL price target of $305.81 suggests 12% upside from current trading levels.
