Goldman Sachs retained its target price for Lenovo Group (00992) unchanged at HK7.5 but upgraded its rating to "buy" from "neutral".
The research house said Lenovo's 4Q FY2019 net income beat Goldman's estimate by 30%, with gross margin up to 16.2% (versus 14.2% of Goldman's estimate) thanks to product mix upgrade and lower component costs.
Goldman believes Lenovo will continue to see fundamental improvements across the three business lines (PC, Smartphone, Data centre), and it sees Lenovo's valuation as attractive. Goldman also likes its increasing cash dividend (5% YoY for FY2019, or dividend yield at 5%).
24/05/2019 18:01
[I-bank focus]Goldman upgrades Lenovo Group (00992) to "buy"
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