CITIC Lyon: Raise the target price of Lenovo Group (00992) by about 2% to HK$49.5 to maintain the “outperform the market” rating

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that CITIC Lyon released a research report stating that it will raise the target price of Lenovo Group (00992) by 1.6% from HK$48.7 to HK$49.5, maintain the “outperform the market” rating, and continue to list it as the preferred stock.

The bank updated Lenovo Group's adjusted net profit forecast for the second quarter of fiscal year 2027 (up to the end of March 2027) to US$1.18 billion, 13% higher than market expectations, mainly due to higher than expected server business revenue and profit margins.

The bank expects Lenovo Group's server business revenue to increase 150% year over year in the second quarter of fiscal year 2027; despite a decline in personal computer (PC) shipments, Smart Device Business Group (IDG) revenue is expected to increase 11% year over year. The bank indicated that “neocloud” (neocloud) server orders are strong, and there is no need to worry about payments.