Bank of America Maintains Buy Rating on Apple Despite New CEO
On September 8, Bank of America analyst Wamsi Mohan reaffirmed a 'Buy' rating and $380 price target for Apple (AAPL), despite the stock closing at $316.22—a drop of over 1% that day. The firm expects strong performance from premium iPhone models in fiscal years 2026 and 2027, with revenue growth projected to reach nearly $477 billion by FY2026 and earnings per share rising above consensus estimates. Apple's stock has historically shown a pattern of declining on launch days before recovering over the following months. This event marked John Ternus’s first as CEO, adding attention to how leadership changes might influence investor sentiment or product strategy. Bank of America anticipates three iPhone models—18 Pro, 18 Pro Max, and Apple's debut foldable phone—with higher pricing expected due to increased component costs. The firm also noted that the base iPhone models have been delayed until spring 2027, shifting focus toward premium offerings for the holiday season. The $380 price target implies a forward multiple of about 37 times calendar-year earnings in 2027—above historical averages but reflective of confidence in Apple's ability to outperform expectations.
Topics: Apple stock Bank of America analyst note iPhone launch impact