[ET Net News Agency, 5 February 2021] CLSA lifted its target price for Lenovo Group
(00992) to HK$16.3 from HK$14 and reiterated its "buy" rating.
The research house said Lenovo delivered record-high quarterly results, beating
consensus once again. CLSA said Lenovo's leading scale and global manufacturing
flexibility beget high bargaining power in both product offerings and pricing amid a
supply shortage supporting margin stability.
Server margin improvement is also on track following the three-pronged approaches.
Service-led transformation is executed well with higher growth visibility evidenced by
rising booking revenue and contracts, it added.
CLSA raised its FY2021/22/23 EPS forecasts by 9%/20%/12% to factor in the prolonged PC
demand strength and structural margin improvement. (KL)