LENOVO GROUP Defies Market Downturn as Nomura Upgrades to Buy, Raises TP to HKD16

LENOVO GROUP (00992.HK) +0.120 (+0.944%) Short selling $369.71M; Ratio 32.336% opened 0.55% higher today (20th), reaching an intraday high of HKD13.07. It is now trading at HKD12.82, up 0.87% against the market trend, with turnover of 37.3425 million shares, involving HKD481 million. The HSI was last at 25,634 points, down 163 points or 0.6%.Nomura published a research report upgrading LENOVO GROUP (00992.HK) +0.120 (+0.944%) Short selling $369.71M; Ratio 32.336% from Neutral to Buy and raising its TP from HKD11 to HKD16. The broker noted that strong demand for general-purpose servers will significantly improve the profitability of its server business, offsetting concerns over a slowdown in the personal computer (PC) segment, which it believes has not been fully reflected by the market. Nomura raised its earnings forecasts for Lenovo for fiscal years 2026 to 2028 by 9% to 45%.Nomura stated that Lenovo's general-purpose server business outlook remains robust, mainly driven by strong demand for artificial intelligence (AI) inference and AI agents. The report cited optimistic growth prospects for CPU servers from major clients such as Microsoft Corporation (MSFT.US) and ByteDance, with order visibility potentially extending to the third fiscal quarter ending December. Despite rising CPU and memory costs, Nomura believes Lenovo can pass on the increased costs to customers, thereby enhancing selling prices and profitability. As a result, the broker expects Lenovo's server segment operating profit to improve significantly and surpass its historical peak in 2022. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-19 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)