[ET Net News Agency, 8 November 2019] Citi Research lowered its target price for Lenovo
Group (00992) to HK$7.1 from HK$7.8 and maintained its "buy" rating.
The research house said Lenovo's 2Q FY2020 results beat expectations on stronger PCSD
(PC & Smart Device) and MBG (Mobile Business Group) margins, while the recovery in DCG
(Data Centre Group) remains lackluster. Guidance for 3Q suggests solid PC and mobile
profitability, with DCG momentum to improve in 2H versus 1H.
Citi said Lenovo's shares have corrected since mid-August due to investors' concerns
over the growth outlook DCG. As management's guidance suggests positive momentum backed by
new customer additions, Citi thinks this should help relieve market concerns. The research
house trimmed its FY2020/21/22 earnings by 2%/4%/4% to reflect slower DCG momentum and
higher finance costs. (KL)
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00992 LENOVO GROUP
Nominal 
9.030 +0.210 (+2.381%) Research Report
08/11/2019 15:47
{I-bank focus}Citi lowers Lenovo Group (00992) to HK$7.1
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