Goldman Sachs raises Lenovo Group's target price by 5% and maintains a buy rating.

On January 2nd, Jin10 News reported that Goldman Sachs raised its target price for Lenovo Group (00992.HK) by 4.6%, from HK$12.7 to HK$13.28, while maintaining a buy rating. The report believes that the current valuation of the company is attractive, and the net profit margin will gradually recover to 2.7-2.8% in fiscal year 2027-2028, which is similar to the level in fiscal year 2022-2023. Goldman Sachs lowered its net profit forecast for the company in fiscal years 2025-2027 by 16%/13%/6% and introduced a forecast for fiscal year 2028. Goldman Sachs expects Lenovo’s revenue to rise by 18% YoY in 2025, with a gross profit margin of 16.6%. This growth is sustainable and is driven by AI PCs, AI servers, and supportive product cycles. The current market price of Lenovo is trading at a P/E ratio of 10 times in 2025, which is lower than the industry average of 12.8 times and its historical average of 11.3 times. It is believed that the current valuation is attractive.