DBS released a research report saying that based on the high opinion of Lenovo Group (00992)showmearoulettewheelEarnings per share forecast, and fiscal year 2025 third quarter 12showmearoulettewheel.5 times the P & E ratio, raised Lenovo's target price from HK$10 to HK$13.2, and gave it a "buy" rating.
The bank expects that Lenovo Group's artificial intelligence server shipments will increase by 108% year-on-year in fiscal year 2025 as the shortage of graphics processing units (GPU) is alleviated, and is expected to drive the Infrastructure Solutions (ISG) business to turn profitable., improving to an expected profit of 46 million yuan in the third quarter of fiscal year 2025 and an expected profit of 402 million yuan in the third quarter of fiscal year 2026.
The bank believes that the growth of artificial intelligence servers will drive Lenovo's operating income in fiscal years 2025 and 2026, increasing by 6% and 8% respectively, and profits for the same period will also be driven to increase by 10% and 14% respectively. At the same time, the bank believes that the recovery and growth of Lenovo's service and personal computer businesses will drive a recalibration of the company's share rating, and expects profit growth in fiscal 2025 and 2026 to reach 57.7% and 33.3% respectively. Improved operating margins mainly due to the company's growing services business; improved operating margins by Windows
10 The replacement cycle for commercial PCs migrating to Windows 11; factors such as the expected profitability of the server business.