I'm LongbridgeAI, I can summarize articles.UBS raised Lenovo Group's target price to HKD26 from HKD18, maintaining a Neutral rating. The upgrade reflects strong Infrastructure Solutions Group (ISG) performance, driven by AI server demand and 45% YoY growth in June, which offset a slowdown in the Intelligent Devices Group. UBS increased fiscal 2027 and 2028 revenue forecasts by 3% each and adjusted EPS estimates upward, citing improved profitability and product pricing despite declining PC shipments.
UBS issued a research report raising its forecast for LENOVO GROUP (00992.HK) +0.520 (+2.158%) Short selling $612.28M; Ratio 20.531% 's revenue QoQ growth for the first fiscal quarter ended June to 4% from the previous 2%, mainly driven by an acceleration in Infrastructure Solutions Group (ISG) revenue growth to 45% YoY in June. Operating margin improved to 4%, while AI servers accounted for nearly 20% of the segment's business. However, growth of the Intelligent Devices Group (IDG) is expected to slow to 11% YoY, with personal computer (PC) shipments declining 5% YoY to 16.7 million units. Nevertheless, operating margin was maintained at nearly 7%, supported by higher average selling prices and previously purchased low-cost inventory.
UBS said that supported by continued server momentum and product price increases, it raised LENOVO GROUP's revenue forecasts for fiscal 2027 and fiscal 2028 by 3% each to USD95.773 billion and USD106.576 billion, respectively. The broker expects the ISG business to maintain 43% YoY growth in fiscal 2027, while Solutions and Services Group (SSG) growth is projected at 20%, and device business growth is expected to slow to 5%.
UBS adjusted its EPS forecasts for LENOVO GROUP for fiscal 2027 and fiscal 2028 to HKD0.5 and HKD2, respectively, reflecting stronger ISG sales and profitability, as well as the impact of warrant-related expenses. The broker raised its TP from HKD18 to HKD26, equivalent to 13x projected fiscal 2028 PE, while maintaining a Neutral rating.(ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-23 16:25.)