Daiwa Capital Markets lowered Lenovo Group's target price to 9.7 yuan. PC sales remain stable, but growth visibility is still low

Daiwa Capital Markets report indicates that Lenovo Group (00992.HK) is expected to announce its third-quarter results for the fiscal year 2026 on February 12, 2026. The firm estimates that its adjusted net profit will increase by 8.2% year-on-year to USD 470 million, while revenue is expected to grow by 12.1% year-on-year. The robust revenue growth is primarily driven by demand from consumers replacing personal computers ahead of further price increases during the memory supercycle. The firm has taken into account the unexpected memory shortage situation and has lowered its estimates for the fiscal years 2027 to 2028. It maintains a "Hold" rating, with the target price revised down from HKD 10.6 to HKD 9.7