Analyst Jim Hin Kwong Au of DBS maintained a Buy rating on Lenovo Group, with a price target of HK$23.50.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Jim Hin Kwong Au has given his Buy rating due to a combination of factors tied to Lenovo’s transition into a hybrid AI platform and its strong recent performance. He highlights that Lenovo is moving beyond its legacy as a PC-centric manufacturer by leveraging its global device base, supply chain strength, and new AI-driven products like Qira-enabled AI PCs and Motorola smartphones, all of which support management’s ambition to scale revenue toward USD100bn within two years.
Au also emphasizes that Lenovo’s Infrastructure Solutions Group has shifted from pure growth to profitable expansion, with robust server revenue momentum and improving margins driven by AI infrastructure, rack-scale deployments, liquid-cooling solutions, and the Infinidat acquisition. On this basis, he raises earnings forecasts for FY3/27F and FY3/28F, lifts the target price to HKD23.5 while keeping the valuation multiple unchanged, and views ongoing server margin gains and clearer AI order visibility as key catalysts that justify maintaining a Buy recommendation.