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HSBC has become the latest Wall Street firm to show increased confidence in Apple upgrading the stock from Hold to Buy and raising its price target to $366 from $260.

Analyst Nicolas Cote-Colisson cited Apple’s “operational turning point,” improving iPhone demand, and a promising AI-driven product cycle as key factors behind the upgrade. The new target implies roughly 10-12% upside from recent trading levels around $325–$333.

“Apple is at an inflection point with a strong cycle ahead,” the note indicated, pointing to better-than-expected hardware momentum, services resilience, and the upcoming rollout of enhanced Apple Intelligence features. HSBC also outlined a blue-sky scenario that could push the target even higher if AI execution exceeds expectations.

This move follows several other recent analyst actions in July 2026:

• Citi raised its price target to $365 from $315 (Buy rating) on July 13, emphasizing market share gains and AI upside.

• KeyBanc downgraded the stock to Underweight with a $250 target on July 14, a more cautious outlier view.

• Earlier in the month, JPMorgan lifted its target to $345.

The adjustments come as investors gear up for Apple’s fiscal third-quarter earnings on July 30, 2026. Analysts will be watching iPhone sales trends, services growth, gross margins, and forward guidance into the fall launch season.

The consensus on AAPL is a Moderate Buy, with an average price target around $325–$330 across 30+ analysts. Bullish firms continue to highlight Apple’s ecosystem strength and AI potential as drivers for a multi-year growth story.

Apple shares have shown resilience in 2026, up significantly year-to-date, though they remain sensitive to macroeconomic factors and competition in premium smartphones.

KeyBanc is regularly wrong on Apple, so their recent downgrade is actually yet another positive sign for AAPL.

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Source link: https://macdailynews.com/2026/07/23/hsbc-upgrades-apple-to-buy-raises-price-target-to-366-ahead-of-q3-earnings/

Bank of America expects Apple to surpass Wall Street expectations when it reports fiscal third-quarter results on July 30, marking Tim Cook’s final earnings call as CEO.

In a note released Monday, BofA analyst Wamsi Mohan maintained a Buy rating on the stock and a $380 price target. The firm is modeling revenue of $109 billion and earnings per share (EPS) of $1.89, comfortably ahead of consensus estimates of $108 billion in revenue and $1.87 in EPS. That would represent approximately 16% year-over-year revenue growth, exceeding Apple’s own guidance range of 14-17%.

Investor attention heading into the report is likely to focus on three key areas: component cost inflation, the durability of gross margins, and the implications of Cook’s departure from the CEO role.

BofA noted that product gross margins are expected to decline sequentially in both the June and September quarters due to the staggered launch schedule of the next iPhone lineup. Pro, Pro Max, and Fold models are slated for September, while the base model and Air are not expected until March. The firm views the near-term margin pressure as “transitory,” forecasting a rebound to 38.5% in the December quarter as the new devices launch at higher prices.

On the services side, BofA projects 14% year-over-year growth in the third quarter. While App Store revenue growth has slowed to 3.2% from 9.8% in the previous quarter, the firm anticipates strength in iCloud and Licensing to more than offset the slowdown.

Looking further ahead, the bank adopted a more cautious stance for the second half of calendar 2026. It modeled fourth-quarter revenue at $106 billion and EPS at $1.88, below Street forecasts of $114 billion and $2.01, citing potential volatility from the new split iPhone launch cadence.

Despite the tempered longer-term outlook, BofA’s overall message remains positive, reinforcing confidence in Apple’s ability to deliver a solid beat in the upcoming report.

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Source link: https://macdailynews.com/2026/07/20/bofa-bullish-on-apple-expects-earnings-beat-on-july-30-and-reiterates-380-price-target/