Investors Likely Overestimating Impact of Potential Tariffs on Lenovo -- Market Talk

Dow Jones11-19

0219 GMT - Investors might be too pessimistic about the impact of a potential Trump tariff on Lenovo Group, Morningstar analyst Kazunori Ito says in a research note. The market likely underestimates the margin expansion driven by replacement demand for general servers and commercial PCs, he says. "We believe Lenovo currently manufactures its servers outside of China and has already diversified its smartphone production globally," he says. Morningstar expects the firm to shift some of its PC production outside of China in 1H of 2025 to mitigate potential impacts. However, the replacement cycle for commercial PCs could be delayed by one or two quarters due to delayed launch of Intel's Lunar Lake chips, he adds. Lenovo shares are up 0.1% at HK$8.99. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

November 18, 2024 21:19 ET (02:19 GMT)

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Morningstar expects the firm to shift some of its PC production outside of China in 1H of 2025 to mitigate potential impacts. However, the replacement cycle for commercial PCs could be delayed by one or two quarters due to delayed launch of Intel's Lunar Lake chips, he adds. Lenovo shares are up 0.1% at HK$8.99. 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The market likely underestimates ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0321505868.SGD","symbol_name":"Schroder ISF Global Dividend Maximiser A Dis SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2484095633","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484095633","pubTimestamp":1731982740,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0219 GMT - Investors might be too pessimistic about the impact of a potential Trump tariff on Lenovo Group, Morningstar analyst Kazunori Ito says in a research note. The market likely underestimates the margin expansion driven by replacement demand for general servers and commercial PCs, he says. \"We believe Lenovo currently manufactures its servers outside of China and has already diversified its smartphone production globally,\" he says. Morningstar expects the firm to shift some of its PC production outside of China in 1H of 2025 to mitigate potential impacts. However, the replacement cycle for commercial PCs could be delayed by one or two quarters due to delayed launch of Intel's Lunar Lake chips, he adds. Lenovo shares are up 0.1% at HK$8.99. 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The market likely underestimates the margin expansion driven by replacement demand for general servers and commercial PCs, he says. \"We believe Lenovo currently manufactures its servers outside of China and has already diversified its smartphone production globally,\" he says. Morningstar expects the firm to shift some of its PC production outside of China in 1H of 2025 to mitigate potential impacts. However, the replacement cycle for commercial PCs could be delayed by one or two quarters due to delayed launch of Intel's Lunar Lake chips, he adds. Lenovo shares are up 0.1% at HK$8.99. 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