Cook a Capable Successor, Apple Still a Buy: Analysts

Steve Jobs' announcement late Wednesday that he was stepping down as CEO of Apple sent ripples through the markets. But several analysts who cover the company said new CEO Tim Cook is a capable successor and reiterated their "buy" ratings on the stock.

"We believe Cook is a highly capable executive and deeply familiar with Apple's business plans, product roadmaps and operations," Chris Whitmore of Deutsche Bank said in a note to clients.The sentiment was echoed by analysts at UBS, Barclays and JP Morgan, who said Cook was well prepared for the role.Cook, 50, who has been with Apple for more than a decade, has stepped in as interim CEO numerous times in the past three years while Jobs was undergoing treatment for pancreatic cancer.

"(Cook) knows the mentality, he knows how Apple (NASDAQ: AAPL) runs. He knows their vision, their goals. So I think fundamentally there's not going to be a huge structural change," Alistair Fullerton, global head of strategy at IND-X Securities told CNBC on Thursday.Despite the confidence, it's easy to understate the task at hand. Maintaining Apple's momentum will be key for investors, given that it has beaten Wall Street expectations for nine straight quarters amid a weakening U.S. economy."In times when consumers shouldn't be spending, you are seeing profits of 70, 80 percent." Fullerton said. Next Product CycleCook's ascent comes at a time when Apple is facing increasing competition from other smartphone makers, such as Samsung, Nokia (NYSE: NOK) and HTC. He will oversee Apple's next big product launch, the release of the much-anticipated iPhone 5. But one analyst warns the big risks for investors will come only in a few years with Apple's next product cycle.

"I'm not concerned about iPhone 5, I'm not concerned about any products releasing [in the] next 12 to 15 months," said Sandeep Aggarwal, senior analyst and partner at Digital Route. "I'm more concerned about, two years out, can Apple still ignite the interests which their new products typically get...can Apple continue to have the same creativity and innovation which we have seen in the last 10 years?" It's a view shared by other analysts, who worry that without Jobs at the helm, innovation may suffer."Apple was so far ahead of the curve that now you're starting to see its competitors catching up," IND-X Securities' Fullerton said. "Certainly Jobs was the general that ran Apple so incredibly well and turned it into the company that it is today."

For now, most analysts remain bullish on the stock. UBS is maintaining its "buy" rating with a 12 month price target of $510, while Deutsche Bank has a "buy" rating on the shares with a $500 target. JPMorgan thinks the stock could go to $525 over the next year."While the news could weigh on shares in the near term, we think the company's model is built to last, sustaining a "digital way of life" that other industry participants have yet to rival," JPMorgan said in its report.Barclays recommends buying the shares on any weakness. "While the economy remains a concern for all companies in our sector, we anticipate Apple to gain substantial share in smartphone and PC-related segments as the entire company executes its strategy," Barclays said in a note. The firm maintained its "overweight" position on Apple, with a $515 price target.