TLDR
- HSBC upgraded Apple to Buy from Hold, raising its price target 41% to $366 from $260
- Analyst Nicolas Cote-Colisson says Apple is at an “operational turning point” driven by AI and product pipeline
- New agentic Siri with visual intelligence and cross-app context is a key growth catalyst
- Hardware roadmap includes iPhone 18 Pro, a foldable iPhone, and smart glasses through 2027
- Apple reports Q3 FY26 earnings on July 30; Wall Street expects EPS of $1.89 on revenue of $108.85B
HSBC analyst Nicolas Cote-Colisson upgraded Apple (AAPL) to Buy from Hold on Friday and lifted his price target by 41% to $366 from $260, calling Apple a stock at an “operational turning point.”
Apple stock was up 1.76% following the note, which landed ahead of the company’s Q3 FY26 earnings report due July 30.
HSBC had previously preferred other parts of the AI trade — hyperscalers and memory makers — but Cote-Colisson now says Apple is better positioned to benefit from AI than the bank had assumed.
The key reason: Apple’s 2.5 billion installed device base. HSBC sees that as the engine that powers a coming wave of Apple Intelligence adoption — without the heavy capital spending that’s weighed on the hyperscalers.
Apple invests just 2.5% of estimated 2026 sales in capex, compared to 39% for hyperscalers. That’s a very different cost structure, and HSBC thinks the market hasn’t fully priced it in.
Agentic Siri Takes Center Stage
The upgrade leans heavily on Apple’s revamped Siri. The new agentic version will add visual intelligence and context-aware conversations that work across apps. It runs on foundation models distilled from Gemini, operating both on-device and through Apple’s private cloud.
HSBC views the timing of this AI rollout as well-matched to the hardware cycle coming over the next two years.
A Packed Hardware Pipeline
On the product side, HSBC pointed to one of Apple’s busiest roadmaps in recent memory.
The iPhone 18 Pro and Pro Max are expected this fall. An iPhone Air is slated for April 2027. Beyond that, a book-style foldable iPhone, a 20th-anniversary special edition iPhone, and smart glasses are all expected in 2027.
HSBC believes this lineup, combined with the improved AI features, could trigger a strong iPhone renewal cycle.
The bank raised its 2027–28 group revenue forecasts by 7–9%. iPhone sales estimates for 2027 were lifted 11–13%, and the 2027 EPS estimate was bumped up by about 8%.
HSBC’s new $366 price target is based on a 2027 non-GAAP P/E of 33.5x and implies around 12% upside from current levels. The bank’s blue sky scenario adds another $31 per share of potential upside.
For Q3 FY26 earnings on July 30, Wall Street is expecting EPS of $1.89 and revenue of $108.85 billion.
Among 30 analysts tracked by TipRanks, 19 rate AAPL a Buy, nine say Hold, and two say Sell. The 12-month average price target sits at $328.69.
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