HSBC Research lowers Lenovo's target price to 11.5 yuan, maintains "Buy" rating

AASTOCKS
2026.02.16 02:38

HSBC Research published a report indicating that Lenovo (00992.HK) is expected to exceed market expectations for operating profit margin in the third quarter of fiscal year 2026 (the quarter ending December 2025). Operating profit reached USD 903 million, which is 19%/8% higher than the bank's and market's expectations, respectively.

The report stated that Lenovo anticipates a decline in personal computer shipments in 2026, but revenue remains resilient due to potential market share gains. The bank maintains a "Buy" rating on Lenovo, with the target price adjusted from HKD 11.7 to HKD 11.5.

The report noted that Lenovo's management expects personal computer shipments in 2026 to record a mid-to-high single-digit percentage decline, while the average selling price is expected to increase by a single-digit percentage as the product mix shifts towards high-end products. The bank estimates the company's operating profit margin for fiscal year 2027 to be 3.4%, slightly better than the market expectation of 3.3%

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