0759 GMT - Lenovo's AI infrastructure momentum should be intact despite recent market volatility, Citi analysts say in a research note. While there have been increasing market concerns surrounding highly leveraged AI infrastructure operators like Coreweave, a client of Lenovo, the company's direct exposure to higher-risk neocloud customers remains limited, they say. Citi expects Lenovo's fiscal 2Q revenue to rise 33% on year to US$27.1 billion and its adjusted net profit to reach US$1.18 billion, reflecting intact infrastructure revenue momentum and continued margin improvement. However, Citi lowers Lenovo's target price to HK$40.00 from HK$50.00 reflecting the potential share dilution on convertible bonds and warrants. Shares are 8.0% higher at HK$28.06.
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Lenovo's AI Infrastructure Momentum Expected to be Intact
Dow Jones15:59
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