Morgan Stanley: Assigns Lenovo Group (00992.HK) an "Overweight" rating, target price raised to HKD 46.

According to the Zhitong Finance APP, Morgan Stanley released a research report stating that Lenovo Group (00992.HK) significantly exceeded expectations in its first fiscal quarter, with ISG (Infrastructure Solutions Group) revenue nearly doubling year-on-year, and operating profit margin further expanding to 9.1%. Management confirmed this as a structural profitability benchmark and not a one-time phenomenon. The bank raised Lenovo's target price by 35%, from HK$34 to HK$46, maintaining an "overweight" rating. The target price corresponds to a projected price-to-earnings ratio of approximately 12.7 times for the fiscal year 2028, slightly above the three-year historical average plus one standard deviation of 12.1 times, indicating that Lenovo's continuous achievement of ISG targets will support a valuation reevaluation.