Jinwu Financial News | Lenovo Group (00992) showed a positive trend and rose to a one-month high. The provisional report was HK$9.53, up 3.47%, with a turnover of HK$263 million.
Morgan Stanley released a research report stating that it maintained Lenovo Group's “gain” rating and raised the company's profit for the 2024-2026 fiscal year by 3%-4%, reflecting a slight improvement in demand for personal computers (PCs). The target price increased 3.4% from HK$8.8 to HK$9.1. The bank remains optimistic about the Group's PC replacement cycle from the second half of 2024. But without specific data and high predictability of the PC upgrade and infrastructure solutions business (ISG) break-even timing, Damo doesn't think the stock will outperform.
Furthermore, Nomura said earlier that it is expected that the company's management's outlook may not become positive until the visibility of orders in the second half of FY2024 extends further, but the bank raised the Group's profit forecast for the 2024-2026 fiscal year by 2% to 5%, and the target price was raised from HK$10 to HK$11. The bank believes that AI server shipments may accelerate from June, driven by H20 and H200 chips.