The Zhitong Finance App learned that Morgan Stanley released a research report saying that Lenovo Group (00992.HK)'s first-quarter results far exceeded expectations, ISG (Infrastructure Solutions Group) revenue nearly doubled year-on-year, and operating profit margin further expanded to 9.1%. Management confirmed that this is a structural profitability benchmark and is not a one-off phenomenon. The bank raised Lenovo's target price by 35%, from HK$34 to HK$46, and the rating was “increased”. The target price is equivalent to about 12.7 times the projected price-earnings ratio for the 2028 fiscal year, slightly higher than 12.1 times the three-year historical average +1 standard deviation. It is believed that Lenovo's continued achievement of the ISG target will support the re-evaluation of the valuation.

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Lenovo Group (00992.HK)'s first-quarter results far exceeded expectations, ISG (Infrastructure Solutions Group) revenue nearly doubled year-on-year, and operating profit margin further expanded to 9.1%. Management confirmed that this is a structural profitability benchmark and is not a one-off phenomenon. The bank raised Lenovo's target price by 35%, from HK$34 to HK$46, and the rating was “increased”. The target price is equivalent to about 12.7 times the projected price-earnings ratio for the 2028 fiscal year, slightly higher than 12.1 times the three-year historical average +1 standard deviation. It is believed that Lenovo's continued achievement of the ISG target will support the re-evaluation of the valuation.