Goldman Sachs: Maintains "Buy" rating on LENOVO GROUP (00992) with target price raised to 31 Hong Kong dollars.

Goldman Sachs has released a research report stating that it has raised the target price of LENOVO GROUP (00992) by 14.8%, from 27 Hong Kong dollars to 31 Hong Kong dollars, maintaining a "buy" rating. Goldman Sachs forecasts that Lenovo's earnings per share for the fiscal years 2027-2028 will grow by 25% annually, up from the previous forecast of 24%, and the operating profit margin will be 3.8%, up from the previous forecast of 3.7%. The bank expects that the company's Infrastructure Solutions Group (ISG), AI personal computers, and AI servers will drive the company's re-evaluation, diversifying it and moving away from the highly competitive consumer electronics market, while benefiting from the trend of generative AI. The bank anticipates that Lenovo, as a leading global PC brand, will become a major beneficiary of the trend in AI personal computers. Lenovo's personal AI agent will drive its overall AI solution in terms of devices, infrastructure, and software. Lenovo's laptop market share was 27% in the global market in 2025, and the bank expects it to reach 28% in 2028. By then, the penetration rate of AI laptops will reach 66%, driving its overall average selling price to reach 1,114 US dollars in 2028, with a compound annual growth rate of 8% from 2025 to 2028.