Citigroup: significantly raised the target price of Lenovo Group to HK$20, maintains a "buy" rating.

Citibank released a research report, significantly raising Lenovo Group's target price from 12.6 Hong Kong dollars to 20 Hong Kong dollars, maintaining a "buy" rating. The bank also raised the company's earnings forecast for fiscal years 2027 and 2028 by 53% and 47% respectively, and introduced an adjusted earnings forecast of 27.57 cents per share for fiscal year 2029. The bank noted that Lenovo has an advantage in capturing market share in the face of critical component shortages and limited production capacity. With the continued demonstration of execution capabilities in achieving operational leverage and expanding product portfolio following the acquisition of Infinidat, the company is also benefiting from the increase in average selling prices and GPU server prices.