Nomura reiterated a buy on Lenovo Group (00992.HK) and raised its target price
to HK$35 from HK$16, based on 20x FY2027 EPS, implying about 46% upside. The
broker said momentum in Lenovo’s general server business may exceed
expectations; despite the stock rallying more than 100% since May, Nomura
expects further upside because the market has not fully priced the server
opportunity, its FY2027/28 earnings forecasts run roughly 10% above consensus,
and Lenovo is in a re-rating phase with peers such as Dell trading near 30x
one-year forward P/E. Nomura lifted its FY2027/28 EPS forecasts by 12%.
