Apple Inc. shares rose 1.8% on Thursday to a fresh record high, with the stock climbing 15.2% in July and on pace for its best month in nearly four years. The rally prompted HSBC to upgrade AAPL to 'Buy' from 'Hold' with a $366 price target on Thursday. The outperformance stands in contrast to the tech-heavy Invesco QQQ Trust Series 1, which has dropped nearly 5% this month amid a sharp selloff in chip stocks, making Apple the second-best performer among the Magnificent Seven in July.
HSBC Upgrades AAPL to Buy With $366 Price Target
HSBC upgraded Apple stocks to 'Buy' from 'Hold' on Thursday and set a $366 price target. The target implies a 10% upside from AAPL's closing price on Thursday. The upgrade came as the stock extended gains in overnight trading following the record close.
Analyst Ratings Remain Divided on AAPL Stocks
Analyst opinions on Apple stocks are mixed. According to Koyfin, 28 out of 47 analysts currently rate the stock 'Buy' or higher, while 16 rate it 'Hold' and three rate it 'Sell' or lower. The average analyst price target stands at $315.79, which is over 5% below the current stock level.
Apple Raises Prices Across Product Lineup and AppleCare+ Subscriptions
Apple has raised prices across its MacBook, iPad, HomePod and Apple TV lineup in recent weeks, with indications from the company that iPhone prices could be next. On Thursday, Apple increased the price of AppleCare+ service subscriptions for Macs and iPads by $0.5 in the monthly plans and $5 in the annual plans for new sign-ups.
John Ternus to Succeed Tim Cook as CEO on Sept. 1
Apple announced a leadership transition with John Ternus set to take over as CEO on Sept. 1, succeeding Tim Cook. Investors are closely watching the transition as the company continues its product pricing adjustments and strategic initiatives.
Apple Eyes AI Chip Startup Acquisitions
The Information reported, citing its sources, that Apple is eyeing companies to bolster its efforts to make server processors for running AI. The iPhone maker has approached chip startups to gauge their interest in a buyout and has spoken with bankers about possible deals, according to the report.
Retail Sentiment Turns Bullish Ahead of Earnings
AAPL was trending among the top 10 tickers on Stocktwits Thursday evening. Stocktwits sentiment for the stock was 'bullish' as of the last reading, having climbed over the past week. One trader wrote: "AAPL good run, can it go a bit more ? Sure but why play with your profits if your in low. Take some home." Another trader expressed skepticism, stating: "AAPL Cyclical, rotation. Whatever you wanna call it. Semis, Google, NVDA RED and this one is at ATH? Regardless of the lack of innovation, just buybacks mostly and the 'rotation'. Insane!" Apple is scheduled to report its fiscal third quarter results on July 30.
FAQ
What did HSBC do with its AAPL rating on Thursday?
HSBC upgraded Apple stocks to 'Buy' from 'Hold' on Thursday and placed a $366 price target, which implies a 10% upside from AAPL's closing price on Thursday.
How much have AAPL stocks gained in July?
Apple stocks have climbed 15.2% in July, putting the stock on pace for its best month in nearly four years and making it the second-best performer among the Magnificent Seven.
When does John Ternus become Apple's CEO?
John Ternus will take over as CEO on Sept. 1, succeeding Tim Cook.
