Bank of America’s unique take on Apple stock as Ternus takes reins

Bank of America’s unique take on Apple stock as Ternus takes reins

Celine Provini

Wed, September 9, 2026 at 7:47 PM GMT+3 4 min read

• AAPL -0.82%
• BAC +0.54%

Wall Street rarely changes its mind about a stock on the day a new phone gets announced. The number an analyst publishes is a bet on earnings two or three years out, and a keynote does not move that math on its own.

That's why analyst notes pile up in the days before an Apple launch. Firms restate where they stand, walk investors through what they expect on stage, and save the real estimate revisions for the quarter that follows.

Bank of America filed its note on Sept. 8. The rating and the target did not move. What sits underneath them did, however, and that's the part worth reading.

Why Apple launch events rarely move the stock the way investors expect

Apple (AAPL) shares closed at $316.22 on Sept. 8, down 1.17% on the session, according to StockAnalysis.com. That leaves the stock roughly 8% below the 52-week high of $344.57 it set in late July, with a market value near $4.61 trillion.

The pattern around these events is well documented. Shares have often drifted lower into a launch and again just after it, then recovered over the following 30 to 60 days, a cycle Bank of America mapped across 24 iPhone launches dating back to 2007.

Related: Apple's new CEO inherits a fortune and an AI question

KeyBanc Capital Markets put a figure on the same tendency, finding that Apple stock has averaged a small decline on launch day over the past five years and a steeper one five sessions later, according to Investing.com.

That history carries more weight this year. John Ternus took over as CEO on Sept. 1, and the "Surprise and shine" event at Apple Park is his first, according to CNBC.

What Bank of America expects from the iPhone 18 lineup and the foldable

Bank of America analyst Wamsi Mohan kept a Buy rating and a $380 price objective in a note published Sept. 8.

Measured against the Sept. 8 close, that implies about 20% upside.

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Mohan expects three phones on stage: the iPhone 18 Pro, the Pro Max, and Apple's first foldable, likely branded Ultra or Fold. He models price increases of $150 to $200 across the Pro line to absorb higher memory and storage costs, and points to media reports putting the foldable at $2,099, which would make it the most expensive iPhone the company has ever sold.

Here is what the bank is modeling, according to the note:

• Fiscal 2026 revenue of $477 billion, up about 15% from a year earlier

• Fiscal 2026 earnings of $8.85 a share, up roughly 19%

• Fiscal 2027 earnings of $9.92 a share

• September-quarter revenue of $112.7 billion and earnings of $1.97 a share

The base iPhone 18, the 18 Air, and the 18e have slipped to spring 2027, the note said. That leaves only premium models on shelves through the holiday selling season, a break from a launch cadence Apple has run for years.

What the $380 Apple price target actually requires

Here is where my analysis lands. The target is not really a call on the foldable. It is a call on earnings that have to run ahead of the Street.

Bank of America's fiscal 2027 estimate of $9.92 a share sits about 3% above the $9.59 Bloomberg consensus figure cited in the note, and roughly 4% above the $9.51 Visible Alpha number. The fiscal 2028 estimate clears both as well.

The multiple says the same thing. A $380 objective works out to about 37 times calendar 2027 earnings of $10.32 a share, above the five-year range of 19 to 35 times and well clear of the 27 times median.

Two smaller numbers in the note held my attention longer than the target did. Bank of America models September-quarter earnings of $1.97 a share, a penny under the $1.98 analysts expect. And if the iPhone 18 starts shipping Sept. 19, Apple gets eight selling days in the quarter, one fewer than the iPhone 17 got last year.

Not everyone shares the view. KeyBanc holds an Underweight rating and a $250 target, modeling iPhone 18 builds near 80 million units across the September and December quarters, down from about 91 million a year earlier, according to Investing.com. MoffettNathanson lifted its target to $304 from $270 and stayed at Neutral, TipRanks highlighted.

The average 12-month target across 44 analysts sits at $324.53, StockAnalysis.com indicated. Bank of America is $55 above that.

Reuters framed the stakes for Ternus as an artificial intelligence test as much as a hardware one, and the note leaves room for that read. Apple's foldable answers a form-factor question. The estimates behind $380 answer a different one.

The Sept. 9 event will produce a price list. The December quarter, reported in late January, will produce the number that decides whether $380 was the right call.

Related: Apple's new CEO faces a staggering $14 billion iPhone test

This story was originally published by TheStreet on Sep 9, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.