[ET Net News Agency, 15 January 2021] BofA Global Research lifted its target price for
Lenovo Group (00992) to HK$10.7 from HK$6.2 and reiterated its "buy" rating.
Lenovo proposed to issue a China Depository Receipt (CDR) on the Shanghai Stock
Exchange. The research house expects the listing to drive up Lenovo's P/E from the current
13x.
BofA expects Lenovo to deliver strong PC shipments in 2021 after a strong 4Q 2020.
Management noted that high visibility into 2Q 2021 and industry growth in 2021 should beat
IDC (Internet Data Center) forecasts of up 3%, on robust Chromebook demand and resuming
demand at enterprise PC from 2H 2021.
BofA expects PTI (pre-tax income) margin to expand on more DAAS (Device as a Service)
offerings at consumer PC over the next several years. It lifted its FY2021/22/23 earnings
forecasts by 5%/7%/17% on solid PC and server recovery. (KL)