[I-bank focus]Citi trims Lenovo (00992) to HK$11.67

    Citi Research lowered its target price for Lenovo Group (00992) to HK$11.67 from HK$15.6, and maintained its "hold" call.
  The research house said Lenovo's share price has dropped 33.4% from its recent peak in May. It is now trading at 9.5-10x PE, lower than the previous trough at 11.5-12x P/E.
  Citi believes the worst has been priced in. It cut its earnings estimates by 43% and 25% in FY2016 and 2017. Citi's initial view was that Lenovo management would be able to turn around the Moto business in 3Q FY2016. It now expects the Lenovo group to grow the smartphone business and turn around Mobile Business Group (MBG) in 1Q FY2017 on weak emerging market demand.