Lyon Securities has released a research report indicating that, based on robust PC margins and rising average selling prices, it has raised its forecast for LENOVO GROUP's (00992) non-Hong Kong financial reporting standard net profit for 2026 to 2028 by 7%, 11%, and 13% respectively. The target price has been slightly increased from HKD 10.3 to HKD 10.4, with an "Outperform" rating maintained.

The report notes that LENOVO GROUP's third-quarter results for the 2026 fiscal year surpassed market expectations, benefiting from strong revenue in the PC business and an operating profit margin of 7.3%. Leveraging industry-leading profitability, the company anticipates positive growth for its Intelligent Devices Business Group in 2026, driven by demand for AI PCs and premium models, which is pushing average selling prices higher.

The analysis suggests that LENOVO GROUP's outlook for 2026 is more favorable than market concerns imply. It is expected that the group can pass on increased memory costs through higher retail prices and improve its bargaining power with suppliers. The return to profitability of the Infrastructure Solutions Business Group is also projected to contribute to earnings growth.