M Stanley: LENOVO GROUP Quarterly Results Beat, TP Raised 76% to HKD66
I'm LongbridgeAI, I can summarize articles.M Stanley upgraded Lenovo Group's target price by 76% to HKD66, maintaining an 'Outperform' rating. The upgrade follows Q1FY2027 results beating expectations, with all divisions posting double-digit revenue growth. ISG revenue surged 98% to a record high, while IDG and SSG grew 27% and 28% respectively. Consequently, profit forecasts for FY2027-2029 were raised significantly, reflecting strong performance in the Infrastructure Solutions Group.
M Stanley issued a research report stating that LENOVO GROUP (00992.HK) -1.300 (-3.725%) Short selling $685.08M; Ratio 10.817% 's results for 1QFY2027 beat expectations, with all three business divisions recording double-digit YoY revenue growth. Among them, ISG revenue surged 98% to a record high, while operating margin reached 9.1%. Revenue for the IDG and SSG businesses increased 27% and 28%, respectively.
The broker raised its FY2027-FY2029 adjusted net profit forecasts for Lenovo by 51.5%, 43.2% and 38.4%, respectively, to reflect strong ISG revenue growth and operating margin expansion. The TP was sharply lifted by 76% from HKD37.4 to HKD66, while the "Outperform" rating was maintained and the stock remained on M Stanley's preferred buy list. M Stanley forecast Lenovo's FY2027 revenue to grow 30% YoY to USD108 billion, with adjusted net profit reaching USD4.3 billion and net profit margin expected at 4%. (gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-14 12:25.)