HSBC upgraded Apple (AAPL) to a 'Buy' rating from 'Hold' on Friday. The bank significantly increased its price target to $366 from $260. HSBC cited an approaching "operational turning point" for the tech giant. It expressed confidence in a forthcoming "strong cycle ahead."
HSBC analyst Nicolas Cote-Colisson highlighted the potential of the recently announced "Apple Intelligence" platform. The platform could leverage the company's 2.5 billion installed devices. HSBC also based the upgrade on a strong upcoming hardware pipeline. This pipeline expects to include new iPhone models and potentially foldable devices. These devices could trigger a strong renewal cycle among users.
Apple's shares fell slightly in premarket trading despite the positive analyst rating. A wider market downturn affecting technology and semiconductor stocks impacted the shares.