[ET Net News Agency, 8 November 2019] Daiwa Research raised its target price for Lenovo
Group (00992) to HK$7 from HK$6.5 and maintained its "outperform" rating.
The research house said Lenovo reported in-line earnings for 2Q FY2020, but its
operating margin beat expectations on better product mix. Despite the CPU shortage and
smartphone model transition, Daiwa expects a positive operating margin trend in 3Q on
seasonality and better mix.
Daiwa cut its FY2020 EPS forecast by 3%, but raised its FY2021-22E EPS estimates by 3%
to reflect slightly lower revenue (on CPU shortage) and higher financial cost, but better
profit margin trajectory. (KL)