Goldman Sachs Affirms Buy Rating on Lenovo After Strong Quarterly Results

Deep News
Feb 12

Goldman Sachs issued a research report stating that LENOVO GROUP's (00992) quarterly performance for the period ending last December exceeded expectations. Revenue increased by 18% year-over-year to $22 billion, surpassing the bank's and market consensus estimates by 8% and 7%, respectively. The gross profit margin remained stable at 15.1% (compared to 15.4% in the second fiscal quarter ending September), largely in line with the bank's and market consensus expectations of 15.2% and 15.4%. The adjusted operating expense ratio improved from 11.7% in the previous quarter to 11%, outperforming the bank's forecast of 12.1%. This drove adjusted operating profit up 28% year-over-year to $903 million, which was 39% higher than the bank's projection. Adjusted net profit rose 35% year-over-year to $589 million, exceeding the bank's estimate by 50%. The firm maintains a "Buy" rating with a target price of HK$11.98.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10