Goldman Sachs: Rising server demand can drive revenue growth. Lenovo (00992) target price raised to HK$13.25.

Recently, the well-known investment bank Goldman Sachs released a research report stating that it maintains a positive outlook on LENOVO GROUP (00992), optimistic about its leading position in the personal computer market, the positive upgrade of its product portfolio towards AIPC, and its better supply chain management capabilities in the face of rising memory costs across the industry. Goldman Sachs also has a positive view on the development of Lenovo's server business, believing that the growth in demand for generative AI will bring opportunities for Lenovo in the AI infrastructure and edge AI device fields. They maintain a "buy" rating with a target price of 13.25 Hong Kong dollars. Taking into account the financial results for the second fiscal quarter ending September this year, the bank has raised its revenue forecasts for the fiscal years 2026 to 2028 for Lenovo by 1% to 2% to reflect the increase in server demand. Considering the relatively low gross profit margin in the server business, the adjusted operating income forecast has been raised by up to 1%, and the adjusted net profit forecast for the fiscal years 2027 and 2028 has been raised by 4% each.