Morgan Stanley: Expects Lenovo Group (00992.HK) ISG order backlog to be underestimated, raising target price to HKD 34.

According to the Zhitong Finance APP, Morgan Stanley has released a research report stating that Lenovo Group (00992.HK) will announce its first quarter results for the fiscal year 2027, ending in June this year, next week. It is forecasted that adjusted net profit will reach approximately $788 million, a year-on-year increase of 102% and a quarterly increase of 41%, which is about 12% higher than market expectations, driven by increased revenue and profit margins from infrastructure solutions. The bank's projections for Lenovo's adjusted net profit from fiscal years 2027 to 2029 are 14%, 20%, and 25% higher than market expectations, respectively. The target price has been raised from HKD 30 to HKD 34, maintaining an "overweight" rating.