HSBC analyst Nicolas Cote-Colisson has upgraded Apple to a 'Buy' rating, raising the price target to $366 from $260. This move signifies a notable shift in sentiment, as Cote-Colisson believes Apple is at an "operational turning point". The upgrade is primarily driven by the company's advancements in artificial intelligence, particularly its revamped Apple Intelligence platform and the upcoming agentic Siri AI, which is set to launch this year with enhanced visual intelligence and cross-app capabilities.
The investment bank highlighted Apple's strategic advantage in AI development, noting that the company invests a mere 2.5% of its estimated 2026 sales in capital expenditures, a stark contrast to the 39% allocated by hyperscalers. This capital-light approach allows Apple to effectively leverage its massive installed base of 2.5 billion devices for AI deployment without incurring significant infrastructure costs. HSBC forecasts strong revenue growth, projecting iPhone sales to increase by 11-13% in 2027, supported by an anticipated robust hardware pipeline including the iPhone 18 Pro and Pro Max, an iPhone Air, and potentially a foldable phone.
HSBC also raised its 2027 Services revenue forecast by 5.4%, anticipating that AI features will deepen user engagement and spending within Apple's ecosystem. The firm's 2027 earnings per share estimate has risen approximately 8% to $10.26, surpassing consensus estimates. This optimistic outlook from HSBC suggests a potential for significant upside, with the stock having already seen substantial gains over the past year, nearing its 52-week high.
