Lenovo Group’s Strategic Growth and Operational Efficiency Drive Buy Rating

UOB Kay Hian analyst Johnny Yum has maintained their bullish stance on LNVGF stock, giving a Buy rating today.

Johnny Yum has given his Buy rating due to a combination of factors related to Lenovo Group’s recent performance and strategic developments. The company’s core business has shown resilience, with expectations for continued growth in the upcoming quarter. This positive outlook is bolstered by the faster-than-anticipated progress in relocating production capacity to Vietnam, which could enhance operational efficiency.
Furthermore, Lenovo’s revenue for the fourth quarter of FY25 exceeded expectations, driven by substantial growth in its infrastructure solutions group. Although the overall operating margins were slightly below estimates due to the expansion of lower-margin business segments, the individual performance of key segments like the intelligent devices group and solutions and services group remained strong. These factors collectively support the Buy rating, with a target price set at HK$12.10.

Yum covers the Technology sector, focusing on stocks such as Xiaomi, Lenovo Group, and Sunny Optical Technology (Group) Co. According to TipRanks, Yum has an average return of 20.9% and a 60.00% success rate on recommended stocks.

In another report released today, DBS also maintained a Buy rating on the stock with a HK$17.20 price target.