Morgan Stanley raises target price of LENOVO GROUP (00992) to 21.75 Hong Kong dollars, maintains "outperform" rating.

Macquarie released a research report stating that LENOVO GROUP (00992) had a strong performance in the fourth quarter of last year, with double-digit growth in revenue for all three business segments. The Infrastructure Solutions Group (ISG) revenue and profits reached record levels, with an operating margin of 3.6%. The bank has significantly raised Lenovo's target price from HK$12.93 to HK$21.75, a 68% increase, with a rating of "outperforming the market" and it has been included in their core recommendation list "Marquee Buy". The bank has raised Lenovo's adjusted net profit forecast for the fiscal years 2027 and 2028 by 23.4% and 37.2% respectively, to reflect the increase in IDG and ISG revenue and operating margins. It is also expected that revenue will increase by 13% in fiscal year 2027, with adjusted net profit growing by 34% and an adjusted net profit margin of 2.9%.