Analysts at Goldman Sachs have increased their price target for LENOVO GROUP (ASX: 00992) by 14.8%, moving it from HK$27 to HK$31, while reaffirming a Buy recommendation.

The firm has revised its earnings per share forecasts upward for the 2027-2028 calendar years, now projecting annual growth of 25%, up from a prior estimate of 24%. The forecast for the operating profit margin has also been adjusted to 3.8% from 3.7%.

Key Growth Drivers

The report highlights that the company's Infrastructure Solutions Group (ISG), along with its AI personal computers and AI servers, are expected to be primary catalysts for a potential re-rating of the stock. These segments are seen as enabling the company to diversify away from the highly competitive consumer electronics market and to capitalize on the generative AI trend.

Market Position and Outlook

As the world's leading PC brand, LENOVO GROUP is positioned to be a major beneficiary of the AI PC trend. The company's personal AI agent is anticipated to drive its comprehensive AI solutions across devices, infrastructure, and software.

LENOVO GROUP's global market share for laptops is projected to reach 28% by the 2028 calendar year, up from 27% in 2025. During this period, the penetration rate for AI laptops is forecast to hit 66%. This shift is expected to push the blended average selling price to $1,114 by 2028, representing a compound annual growth rate of 8% from 2025 to 2028.