"A Turning Point." An HSBC analyst recommended buying Apple stock

HSBC analysts have upgraded Apple’s stock rating from “neutral” to “buy,” according to CNBC. They also sharply raised the company’s price target from $260 to $366. The new target implies 10% upside potential relative to the closing price on July 16.

The reassessment followed a series of record highs reached by Apple’s stock price this week. Since late June, the stock has risen by more than 20%, and on Friday, July 17, the company even briefly surpassed Nvidia in market capitalization, topping the list of the world’s most valuable companies.

According to HSBC analyst Nicolas Cot-Collisson, the iPhone maker’s stock will continue to rise, thanks to the adoption of artificial intelligence technologies and new gadgets. The strategist believes that the launch of AI-based features and a strong product lineup—which he called one of the most innovative—are capable of driving a large-scale device upgrade cycle.

Apple “is currently at a turning point in its operational development,” Kot-Collison wrote to clients. The company is avoiding the AI capital expenditure race, investing only 2.5% of its projected 2026 revenue—compared to 39% for hyperscalers, the analyst notes. At the same time, it is well-positioned to capitalize on its 2.5 billion-device installed base thanks to the updated Apple Intelligence, and will also launch a new agent-based Siri this year, which could boost demand for its gadgets. This, in turn, will drive stock growth, according to HSBC.

Among the expected releases, the analyst mentioned a foldable iPhone, which is expected to be unveiled in September. Many investors view it as an important potential catalyst, especially given that the device will likely be expensive and help offset the impact of high memory chip prices.

Many on Wall Street remain more cautious about Apple than about other tech giants. Just over 60% of the analysts covering the Cupertino-based company recommend buying its stock. By comparison, Microsoft, Amazon, Meta, and Nvidia all have 90% “bullish” ratings, according to Bloomberg. And the average target price for Apple shares is about $322, which is already below current market prices.

The day before, on July 16, Jefferies reaffirmed its “hold” rating on Apple shares and its price target of $299.88, which implies a 10% decline from the most recent closing price. And on July 14, the company received a “sell” recommendation: a KeyBanc analyst called the stock’s valuation unwarranted and warned that he expects iPhone sales to slow.

However, according to MarketWatch data, only five out of 52 forecasts are pessimistic regarding the performance of these companies' stocks.

This article was AI-translated and verified by a human editor