In "The Big Banks," Citigroup raises Lenovo Group's target price to 12.8 yuan, expecting adjusted net profit to increase by 14% in the next fiscal quarter

Li Fa released a report, expecting Lenovo (00992.HK) to achieve a year-on-year revenue growth of 13% in the second quarter of the fiscal year 2026, with adjusted net profit increasing by 14%. The revenue growth of the IDG business will benefit from strong personal computer shipments. Despite facing short-term pressures, the server business is still expected to reach breakeven in the fourth quarter of the fiscal year 2026. Some server orders have been postponed for delivery to subsequent quarters.

The firm has raised the adjusted net profit forecast for the second quarter of the fiscal year 2026 by 3% to USD 436 million, and increased the target price from HKD 11.7 to HKD 12.8, maintaining an "Outperform" rating