Macquarie: Significantly raises target price for Lenovo Group to 21.75 Hong Kong dollars, including it in the core recommended list.

Macquarie released a research report stating that Lenovo Group's performance in the fourth quarter of last year was strong, with double-digit growth in revenue in all three business segments. The Infrastructure Solutions Group business saw record revenue and profits, with an operating margin of 3.6%. The bank significantly raised Lenovo's target price from HKD 12.93 to HKD 21.75, an increase of 68%, rating it as "outperforming the market" and including it in the core recommended list of Marquee Buy. The bank raised Lenovo's adjusted net profit forecast for the fiscal years 2027 and 2028 by 23.4% and 37.2% respectively, to reflect the increase in revenue and operating margin of the IDG and ISG segments. It also forecasts a 13% year-on-year growth in revenue for the fiscal year 2027, with a 34% growth in adjusted net profit and an adjusted net profit margin of 2.9%.