Needham analyst Laura Martin reiterated a Hold rating on Apple (NASDAQ: AAPL).

The analyst commented: "As CEO, Tim Cook transformed AAPL into one of the most operationally efficient companies in history, scaling its global supply chain and building its recurring services ecosystem to drive strong margins, FCF and ROIC growth metrics. His disciplined capital allocation and focus on ecosystem lock-in (iPhone + Ancillary Products + Services) created a predictable, high-LTV business model that materially expanded AAPL's valuation multiple during the 15 years that he was CEO.

We are supportive of the succession plan announced yesterday by AAPL, whereby Tim Cook will leave as CEO on Sept 1 (to become Executive Chairman of the Board), and John Ternus, currently SVP of Hardware Engineering, will become the CEO of AAPL. We are optimistic about value creation from this transition because we believe Ternus will bring a sense of urgency (ie, speed) and risk taking (ie, innovation) to AAPL's product line. "

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Shares of Apple closed at $273.05 yesterday.