BofA Sees Apple's Future in AI, Wearables, and M&A
BofA Securities has reiterated its 'buy' rating on Apple and set a price objective of $380, citing the company's opportunity in agentic AI, multi-year upgrade cycle, large cash balance, and potential to diversify into new end markets.
The brokerage firm said that while much of Apple's core will remain unchanged under incoming CEO John Ternus, who takes over from Tim Cook on September 1, the company may adopt a more aggressive approach to investment in research and development, capital expenditure, and mergers and acquisitions.
BofA noted that Apple has moved away from its net cash neutral objective, which could signal a period of higher investment in these areas. The firm highlighted opportunities in wearables, smart home automation, and virtual and physical personal assistants as potential areas of focus for Ternus.