Morgan Stanley Keeps Lenovo at 'Overweight', Raises Price Target to HK$34

Deep News10:00

Morgan Stanley has released a report stating that LENOVO GROUP (00992) is set to announce its first-quarter results for the 2027 fiscal year, ending June 30, next week. The bank predicts that, driven by rising revenue and profit margins from the Infrastructure Solutions Group (ISG) business, the company's adjusted net profit will reach approximately $788 million, a 102% year-on-year increase and a 41% quarter-on-quarter rise, which is about 12% higher than market expectations.

Morgan Stanley's forecasts for LENOVO GROUP's adjusted net profit for the 2027 to 2029 fiscal years are 14%, 20%, and 25% above market consensus. Consequently, the target price has been raised from HK$30 to HK$34, with the 'Overweight' rating maintained.

The bank notes that supply chain channel data continues to indicate sustained strong order momentum for both AI and general-purpose servers. It believes the market may be underestimating LENOVO GROUP's ISG order backlog and earnings execution capabilities. Morgan Stanley currently projects first-quarter revenue for LENOVO GROUP at $24 billion, representing a 27% year-on-year and 11% quarter-on-quarter increase.

Looking ahead, Morgan Stanley anticipates a structural improvement in memory supply-demand balance driven by AI demand, which should benefit LENOVO GROUP in passing on costs and maintaining profitability. The bank expects the IDG (Intelligent Devices Group) business profit margin to remain stable at 7% to 7.5%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1139873968?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-08-09 10:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1139873968","market":"hk","top_or_hot":-1,"title":"Morgan Stanley Keeps Lenovo at 'Overweight', Raises Price Target to HK$34","media":"Deep News","content":"<p>Morgan Stanley has released a report stating that <b>LENOVO GROUP</b> (00992) is set to announce its first-quarter results for the 2027 fiscal year, ending June 30, next week. The bank predicts that, driven by rising revenue and profit margins from the Infrastructure Solutions Group (ISG) business, the company's adjusted net profit will reach approximately $788 million, a 102% year-on-year increase and a 41% quarter-on-quarter rise, which is about 12% higher than market expectations.<br><br>Morgan Stanley's forecasts for <b>LENOVO GROUP</b>'s adjusted net profit for the 2027 to 2029 fiscal years are 14%, 20%, and 25% above market consensus. Consequently, the target price has been raised from HK$30 to HK$34, with the 'Overweight' rating maintained.<br><br>The bank notes that supply chain channel data continues to indicate sustained strong order momentum for both AI and general-purpose servers. It believes the market may be underestimating <b>LENOVO GROUP</b>'s ISG order backlog and earnings execution capabilities. Morgan Stanley currently projects first-quarter revenue for <b>LENOVO GROUP</b> at $24 billion, representing a 27% year-on-year and 11% quarter-on-quarter increase.<br><br>Looking ahead, Morgan Stanley anticipates a structural improvement in memory supply-demand balance driven by AI demand, which should benefit <b>LENOVO GROUP</b> in passing on costs and maintaining profitability. The bank expects the IDG (Intelligent Devices Group) business profit margin to remain stable at 7% to 7.5%.</p>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley Keeps Lenovo at 'Overweight', Raises Price Target to HK$34</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley Keeps Lenovo at 'Overweight', Raises Price Target to HK$34\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1039043262\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Deep News </p>\n<p class=\"h-time\">2026-08-09 10:00</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>Morgan Stanley has released a report stating that <b>LENOVO GROUP</b> (00992) is set to announce its first-quarter results for the 2027 fiscal year, ending June 30, next week. The bank predicts that, driven by rising revenue and profit margins from the Infrastructure Solutions Group (ISG) business, the company's adjusted net profit will reach approximately $788 million, a 102% year-on-year increase and a 41% quarter-on-quarter rise, which is about 12% higher than market expectations.<br><br>Morgan Stanley's forecasts for <b>LENOVO GROUP</b>'s adjusted net profit for the 2027 to 2029 fiscal years are 14%, 20%, and 25% above market consensus. Consequently, the target price has been raised from HK$30 to HK$34, with the 'Overweight' rating maintained.<br><br>The bank notes that supply chain channel data continues to indicate sustained strong order momentum for both AI and general-purpose servers. It believes the market may be underestimating <b>LENOVO GROUP</b>'s ISG order backlog and earnings execution capabilities. Morgan Stanley currently projects first-quarter revenue for <b>LENOVO GROUP</b> at $24 billion, representing a 27% year-on-year and 11% quarter-on-quarter increase.<br><br>Looking ahead, Morgan Stanley anticipates a structural improvement in memory supply-demand balance driven by AI demand, which should benefit <b>LENOVO GROUP</b> in passing on costs and maintaining profitability. The bank expects the IDG (Intelligent Devices Group) business profit margin to remain stable at 7% to 7.5%.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0370786039.SGD","symbol_name":"Fidelity Greater China A-SGD","start_time":0,"source_url":"","article_id":"1139873968","we_media_id":"1039043262","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1139873968","pubTimestamp":1786240830,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Deep News","introduction":"Global Stock Market Deep Analysis","home_visible":1,"id":"1039043262","head_image":"https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922"},"summary":"Morgan Stanley has released a report stating that LENOVO GROUP (00992) is set to announce its first-quarter results for the 2027 fiscal year, ending June 30, next week. The bank predicts that, driven...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"80992":"联想集团-R","LU0370786039.SGD":"Fidelity Greater China A-SGD","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","LU0862451753.SGD":"JPMorgan Funds - Emerging Markets Dividend A (mth) SGD","LNVGY":"联想集团ADR","LU0543330483.HKD":"TEMPLETON ASIAN GROWTH \"A\" (HKD) ACC","LU0049112450.USD":"FIDELITY PACIFIC \"A\" INC","LU1366334578.USD":"ALLSPRING EMERGING MARKETS EQUITY INCOME \"A\" (USD) INC","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","LU0890818403.SGD":"JPMorgan Funds - Emerging Markets Dividend A (mth) SGD-H","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","LU0320764755.SGD":"FTIF - Templeton Asian Growth A Acc SGD","LU0791591158.USD":"ALLSPRING  EMERGING MARKTES EQUITY INCOME \"I\" (USD) ACC","LU0791590937.USD":"ALLSPRING  EMERGING MARKTES EQUITY INCOME \"A\" (USD)","EWH":"香港ETF-iShares MSCI","LU1235295612.USD":"FIDELITY PACIFIC \"A\" (USDHDG) INC","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","HK0000320223.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) ACC","LU0862451837.USD":"JPM EMERGING MARKETS DIVIDEND \"A\" (USD) INC (M)","LU0572940350.SGD":"Janus Henderson Horizon Asian Dividend Income A3 SGD","LU1366334651.USD":"ALLSPRING EMERGING MARKETS EQUITY INCOME \"I\" (USD) INC","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU1046422090.SGD":"Fidelity Pacific A-SGD","BK1193":"电脑硬件、储存设备及电脑周边","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","HK0000320264.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) ACC","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU0048580855.USD":"富达大中华区A","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","BK1526":"科网股","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU2242644610.SGD":"Fidelity China Innovation A-ACC-SGD","LU0264606111.USD":"Janus Henderson Horizon Asian Dividend Income A2 USD","TCHI":"iShares MSCI China Multisector Tech ETF","IE0032431581.USD":"PINEBRIDGE GREATER CHINA EQUITY \"A\" (USD) ACC","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","IE0003895053.USD":"PINEBRIDGE ASIA DYNAMIC ASSET ALLOCATION \"AD\" USD  ACC","BK1607":"新IT概念","00992":"联想集团"},"translate_title":"摩根士丹利将联想维持在“跑赢大盘”，将目标价上调至34港元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"80992":1,"EWH":1,"00992":1,"LNVGY":1,"TCHI":1},"content_text":"Morgan Stanley has released a report stating that LENOVO GROUP (00992) is set to announce its first-quarter results for the 2027 fiscal year, ending June 30, next week. The bank predicts that, driven by rising revenue and profit margins from the Infrastructure Solutions Group (ISG) business, the company's adjusted net profit will reach approximately $788 million, a 102% year-on-year increase and a 41% quarter-on-quarter rise, which is about 12% higher than market expectations.Morgan Stanley's forecasts for LENOVO GROUP's adjusted net profit for the 2027 to 2029 fiscal years are 14%, 20%, and 25% above market consensus. Consequently, the target price has been raised from HK$30 to HK$34, with the 'Overweight' rating maintained.The bank notes that supply chain channel data continues to indicate sustained strong order momentum for both AI and general-purpose servers. It believes the market may be underestimating LENOVO GROUP's ISG order backlog and earnings execution capabilities. Morgan Stanley currently projects first-quarter revenue for LENOVO GROUP at $24 billion, representing a 27% year-on-year and 11% quarter-on-quarter increase.Looking ahead, Morgan Stanley anticipates a structural improvement in memory supply-demand balance driven by AI demand, which should benefit LENOVO GROUP in passing on costs and maintaining profitability. The bank expects the IDG (Intelligent Devices Group) business profit margin to remain stable at 7% to 7.5%.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"1","news_tag":"express","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1139873968","isCrawlerRequest":true}