Bank of America predicts a bolder Apple under new CEO John Ternus

As Tim Cook prepares to hand the CEO reins to longtime hardware chief John Ternus on September 1st, Bank of America analysts expect the company to keep its highly efficient, cash-generating machine intact, while showing a greater appetite for bigger bets on R&D, capital spending, acquisitions, and new product categories.

Moz Farooque for TheStreet:
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Bank of America thinks that handoff may become more than just a management change, particularly as Apple enters a much faster-moving AI era. For perspective, analyst Wamsi Mohan reiterated a Buy rating and $380 price target, implying roughly 20% upside from Apple’s Aug. 20 price of $316.83. Cook’s Apple has everything to do with extraordinary execution at an immense sale… BofA expects much of that juggernaut of a machine to remain firmly intact under Ternus. The potential break with the Cook era is mostly in risk appetite. The bank underscored Apple’s move away from its net-cash-neutral objective as an early signal that its management might be more willing to deploy capital. That would translate into heavier R&D spending, more CapEx, and potentially bigger acquisitions, areas that weren’t major features of Cook’s strategy. Under Ternus, BofA sees the possibility of Apple moving much more quickly into new categories, including AI glasses, camera-equipped AirPods, smart rings, home automation, personal assistants, and robotics.

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