Morgan Stanley: Slightly lowered Lenovo's target price by 5% and maintained an "overweight" rating

Jinshi data news on February 21st, Morgan Stanley issued a report indicating a slight downward adjustment to the target price of Lenovo Group (00992.HK) by 4.7%, from HK$13.8 to HK$13.15, maintaining an 'overweight' rating. The downward adjustment by Morgan Stanley is for the forecast of the quarter ending in March for the company, reflecting the momentum of the same quarter in December last year, mainly for personal computers. Therefore, the downward revision of profit forecasts for Lenovo in the 2026 and 2027 fiscal years by Morgan Stanley mainly reflects non-cash Interest expenses. The performance of Lenovo's third quarter of the 2025 fiscal year indicates a significant milestone for the group, with the Infrastructure Solutions Group achieving profitability for the first time. It is expected that Lenovo will continue to streamline its enterprise product portfolio, which will help improve profitability. However, Morgan Stanley also hopes that it can expand into more profitable channel businesses. All of this is built on a very strong foundation in the field of cloud computing.