Nomura Securities raised its target price for Lenovo Group (00992.HK) to HK$35 from HK$16 and reiterated its buy rating.
According to Jin10, Nomura based the new target on a valuation of 20 times its forecast earnings per share for fiscal 2027, and said the target implies 46% upside.
Nomura noted that in its previous Lenovo report published in May, it had already highlighted that momentum in the company’s general-purpose server business could exceed expectations by a wide margin.
Despite Lenovo’s share price rising more than 100% since May, Nomura said it believes the outperformance could continue. It cited three reasons: the market has not fully priced in the potential of Lenovo’s server business; Nomura’s profit forecasts for fiscal 2027 and fiscal 2028 are now about 10% above market consensus; and Lenovo is undergoing a re-rating process, with key peer Dell (DELL.N) trading at a one-year forward price-to-earnings ratio of 30 times, which Nomura said creates room for Lenovo’s re-rating.
Nomura also raised its profit forecasts for fiscal 2027 and fiscal 2028 by 12%.
STOCKS | Nomura Raises Lenovo Target Price to HK$35 and Reiterates Buy Rating
2026-06-29 10:26:26
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