HSBC Raises Apple to Buy, Sets $366 Price Target Ahead of July 30 Earnings

According to HSBC, the investment bank on July 18 upgraded Apple to "buy" from "hold" and raised its price target to $366 from $260, ahead of the tech giant's earnings report scheduled for July 30. HSBC analyst Nicolas Cote-Colisson stated that Apple Intelligence and the next-generation AI Siri could drive a new smartphone upgrade cycle, with the company potentially reaching a $5 trillion market valuation.

However, KeyBanc Capital Markets downgraded Apple to "underperform" with a $250 price target, warning the stock trades at 35-36 times earnings versus the S&P 500 average of 20 times, indicating over 20% downside risk. KeyBanc cited concerns about valuation being stretched and the stock entering overbought territory technically, with potential for significant correction if Q3 earnings or AI progress disappoint.