J.P. Morgan Chase published a report that raised Lenovo Group's investment rating from “neutral” to “increased holdings”, and the target price was raised sharply from HK$20 to HK$30. The main benefits were significant improvements in the profitability of the server business, and that the smart device business group's business price flexibility was better than expected. The bank's industry research shows that Lenovo's AI-related customer demand is growing rapidly, and the server business benefits from a favorable pricing environment and healthy profitability. The bank expects the Infrastructure Solutions Group's profit margin to expand further in the next few quarters, benefiting from operating leverage. The bank estimates that Lenovo's AI-related revenue for the first fiscal quarter ended at the end of June already accounted for more than 30% of ISG's revenue, and expects ISG revenue to increase by about 60% year-on-year for the whole year. ISG's operating profit margin will increase from 0.4% in fiscal year 2026 to 5% in fiscal year 2027. In terms of IDG's business, the bank expects Lenovo to continue to benefit from scale advantages, strict cost control and supply chain execution capabilities, and maintain quarterly operating profit levels of about 1 billion to 1.1 billion US dollars. It predicts IDG revenue growth of 10% and 4% year-on-year in 2026 and 2027, respectively, and operating margins of 6.9% and 6.8%, respectively.

J.P. Morgan Chase published a report that raised Lenovo Group's investment rating from “neutral” to “increased holdings”, and the target price was raised sharply from HK$20 to HK$30. The main benefits were significant improvements in the profitability of the server business, and that the smart device business group's business price flexibility was better than expected. The bank's industry research shows that Lenovo's AI-related customer demand is growing rapidly, and the server business benefits from a favorable pricing environment and healthy profitability. The bank expects the Infrastructure Solutions Group's profit margin to expand further in the next few quarters, benefiting from operating leverage. The bank estimates that Lenovo's AI-related revenue for the first fiscal quarter ended at the end of June already accounted for more than 30% of ISG's revenue, and expects ISG revenue to increase by about 60% year-on-year for the whole year. ISG's operating profit margin will increase from 0.4% in fiscal year 2026 to 5% in fiscal year 2027. In terms of IDG's business, the bank expects Lenovo to continue to benefit from scale advantages, strict cost control and supply chain execution capabilities, and maintain quarterly operating profit levels of about 1 billion to 1.1 billion US dollars. It predicts IDG revenue growth of 10% and 4% year-on-year in 2026 and 2027, respectively, and operating margins of 6.9% and 6.8%, respectively.