Overview
- HSBC upgraded Apple to a Buy and raised its price target from $260 to $366 on Friday, calling the company an “operational turning point.”
- The analyst note centers on a redesigned, agentic Siri built from Google’s Gemini models that adds visual intelligence and cross‑app, context‑aware conversations running on‑device and via Apple’s private cloud.
- HSBC materially raised its 2027–28 forecasts, boosting revenue by about 7–9%, 2027 iPhone unit estimates by 11–13%, and 2027 non‑GAAP EPS by roughly 8%, and set the $366 target on a 2027 non‑GAAP P/E of 33.5x.
- Markets reacted to the note with Apple shares rising about 1.8%, and investors are now focused on Apple’s July 30 Q3 FY26 report as the near‑term test of HSBC’s assumptions; Wall Street consensus expects $1.89 EPS on $108.85 billion revenue.
- HSBC highlights Apple’s roughly 2.5 billion installed devices and low capital spending as a structural advantage for rolling out AI, but notes execution risks from earlier Apple Intelligence delays, a related settlement, and dependence on external foundation models and private cloud compute.