CITIC Lyon raised Lenovo Group's target price to HKD 48.7 and maintained a "Outperform" rating.

CITIC Lyon published a report indicating that Lenovo Group's performance in the first quarter of the 2027 fiscal year, ending in June, significantly exceeded expectations, mainly driven by a rapid increase in revenue and profit margins from its server business. The report believes that the group is transforming into an important player in the AI server market, with the target price raised from HKD 36 to HKD 48.7, while maintaining an "Outperform" rating. The bank has also raised its adjusted net profit forecasts for Lenovo for the 2027-2028 fiscal years by 40% and 35%, respectively, to USD 4.4 billion and USD 4.8 billion, while keeping it as a preferred stock in the Chinese technology sector.