Apple Inc. (NASDAQ: AAPL) has entered the John Ternus era from a position of strength, but Wall Street sees the next phase of growth hinging on two significant and unproven bets.
DA Davidson analyst Gil Luria reiterated a Neutral rating on the stock on September 2, alongside a price target of $270.00, signaling cautious optimism about the road ahead.
The firm argues that Apple’s ability to hit the ground running under its new CEO depends heavily on the expected launch of a foldable iPhone Ultra and broad price increases across its product lineup.
Luria stated directly that without these two factors, revenue declines would have been expected for the company next year, underscoring just how critical the product roadmap has become.
Apple enters the Ternus era following a remarkably strong fiscal third quarter, with revenue jumping 16% year-over-year to $109.4 billion and iPhone revenues surging nearly 22% to $54.25 billion.
Former CEO Tim Cook transformed Apple from a $350 billion company into a $4.5 trillion behemoth, and the central challenge for Ternus is now proving there is sufficient growth and product innovation to sustain that momentum.
A foldable iPhone Ultra could offer Apple an entirely new premium pricing tier at a time when incremental improvements from conventional smartphones are becoming increasingly difficult to deliver.
A successful foldable launch would allow Apple to push average selling prices higher and provide the company with an additional and meaningful revenue lever heading into a competitive market cycle.
Luria also noted that Apple’s position in artificial intelligence has been improving, pointing to the revamped Siri AI introduced at WWDC26 as evidence of tighter ecosystem integration that could drive customer upgrades.
The firm flagged a longer product runway, including a glass iPhone, AirPods with a built-in camera, and possible smart glasses, as future catalysts that investors will be watching closely in the years ahead.
However, the same strength that makes Apple impressive also creates a difficult comparison problem, as the company has already guided for slower revenue growth of 9 to 11% in the September quarter while pointing to supply chain headwinds.
Luria specifically highlighted Meta as a source of privacy concerns among consumers in the smart glasses category, which represents a potential obstacle for Apple’s own ambitions in that space.
Hedge fund interest in Apple has remained broadly stable, with 169 hedge funds holding positions in the stock at the end of the second quarter, down only negligibly from 170 in the prior quarter, according to Insider Monkey’s database tracking more than a thousand hedge funds.
Berkshire Hathaway continues to maintain its 227.9 million-share position in Apple, while Arrow Street Capital boosted its stake by 54% and Fisher Asset Management increased its position by 3%.
DA Davidson’s note ultimately frames the Ternus era as a pivotal test of whether Apple can deliver enough product innovation to power the next meaningful leg of growth for the world’s most valuable company.
