Ternus Takes the Reins: BofA Sees Increased Risk Appetite at Apple

Apple's new CEO, John Ternus, is expected to take a bolder approach than his predecessor Tim Cook, according to Bank of America analyst Wamsi Mohan. With Cook stepping down on September 1, 2026, after a 15-year tenure that saw Apple's market capitalization grow from $350 billion to $4 trillion, Ternus is likely to increase research and development spending, capital expenditures, and potentially make larger-scale acquisitions.

BofA maintained its Buy rating and $380 price target for AAPL, implying around 22% upside from the August 20 closing price of $311.30. The analyst cited Apple's departure from its net-cash-neutral objective as a signal that management may be more willing to deploy capital under Ternus.

Ternus has 25 years of experience at Apple and was instrumental in introducing new product lines, including iPad and AirPods, as well as many generations of iPhone, Mac, and Apple Watch products. However, the risk is not inexperience but rather that a shift from operational discipline to innovation-driven spending could temporarily compress margins before new revenue streams offset the investment.