HSBC Upgrades Apple to Buy, $366 Target

HSBC Upgrades Apple to Buy, $366 Target

HSBC analyst Nicolas Cote‑Colisson upgraded Apple Inc. from a Hold to a Buy recommendation and increased the bank’s price target to $366 per share, up from the previous $260 target. The analyst described Apple as being at an operational turning point, with artificial‑intelligence capabilities and a strong product pipeline underpinning the outlook.

HSBC highlighted that Apple plans to invest approximately 2.5 % of its estimated 2026 sales in capital expenditures, a stark contrast to the roughly 39 % capex intensity of hyperscaler peers. The bank noted the deployment of a new agentic Siri AI this year, featuring visual intelligence and context‑aware conversations across apps, built on foundation models distilled from Google’s Gemini that run both on‑device and on Apple’s private cloud infrastructure.

The hardware pipeline cited includes the iPhone 18 Pro and iPhone 18 Pro Max slated for launch this fall, an iPhone Air expected in April 2027, a book‑style foldable phone, a 20th‑anniversary special‑edition iPhone, and smart glasses scheduled for 2027.

HSBC raised its 2027‑28 group revenue forecasts by 7‑9 %, incorporating iPhone sales growth estimates of 11‑13 % and a 5.4 % increase in services‑related revenue. The revised price target implies an upside of roughly 12 % based on a projected 2027 non‑GAAP price‑to‑earnings multiple of 33.5 ×, while the bank’s “blue‑sky” scenario adds an additional $31 per‑share upside potential.