Morgan Stanley: LENOVO GROUP(00992) is in the best position in the Greater China PC market, raising its target price to 11.4 Hong Kong dollars.

Morgan Stanley released a research report stating that as of the end of the fiscal quarter in March this year, the revenue increase of LENOVO GROUP (00992) is expected to drive a slight increase in earnings per share. They reiterated a "overweight" rating on Lenovo and raised the target price by 14% from HKD 10 to HKD 11.4. The bank believes that the upward adjustment reflects their higher earnings estimates for the fiscal years 2026-2027. The report indicates that with the rise in revenue from artificial intelligence personal computers (PCs) and AI servers at LENOVO GROUP, as well as the improvement in profitability of the Infrastructure Solutions Group (ISG) business, the bank believes that LENOVO GROUP is in a prime position in the personal computer market in Greater China. They will benefit from the increase in enterprise PC refresh cycles and the rise in penetration rate of AI PCs, as well as an increase in sales of AI servers.