Lenovo's PC Business Likely to See Diminished Tariff Impact in 2H -- Market Talk

Dow Jones

May 23, 2025

0434 GMT - The impact from tariffs on Lenovo's PC business could diminish in 2H, DBS analyst Jim Au says in a research note. Lenovo's China+1 strategy for PC manufacturing should help it mitigate future hits from U.S. tariffs, the analyst says. While macroeconomic headwinds may continue to dampen consumer sentiment toward PCs, the AI-driven replacement cycle could moderate overall impacts, he notes. DBS expects a surge in Lenovo's AI PC shipments by over 90% in fiscal 2026. Meanwhile, a recovery in its hardware segment's operating margin should begin in the September quarter as Lenovo ramps up its production in Vietnam. DBS maintains a buy call on Lenovo as its sustainable market share gains positions the company well within the AI adoption megatrend, he adds. DBS's target price for Lenovo is currently under review. Shares are last flat at HK$9.57. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

May 23, 2025 00:34 ET (04:34 GMT)

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Lenovo's China+1 strategy for PC manufacturing should help it mitigate future hits from U.S. tariffs, the analyst says. While macroeconomic headwinds may continue to dampen consumer sentiment toward PCs, the AI-driven replacement cycle could moderate overall impacts, he notes. DBS expects a surge in Lenovo's AI PC shipments by over 90% in fiscal 2026. Meanwhile, a recovery in its hardware segment's operating margin should begin in the September quarter as Lenovo ramps up its production in Vietnam. DBS maintains a buy call on Lenovo as its sustainable market share gains positions the company well within the AI adoption megatrend, he adds. DBS's target price for Lenovo is currently under review. Shares are last flat at HK$9.57. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 00:34 ET (04:34 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Lenovo's PC Business Likely to See Diminished Tariff Impact in 2H -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLenovo's PC Business Likely to See Diminished Tariff Impact in 2H -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-23 12:34</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0434 GMT - The impact from tariffs on Lenovo's PC business could diminish in 2H, DBS analyst Jim Au says in a research note. Lenovo's China+1 strategy for PC manufacturing should help it mitigate future hits from U.S. tariffs, the analyst says. While macroeconomic headwinds may continue to dampen consumer sentiment toward PCs, the AI-driven replacement cycle could moderate overall impacts, he notes. DBS expects a surge in Lenovo's AI PC shipments by over 90% in fiscal 2026. Meanwhile, a recovery in its hardware segment's operating margin should begin in the September quarter as Lenovo ramps up its production in Vietnam. DBS maintains a buy call on Lenovo as its sustainable market share gains positions the company well within the AI adoption megatrend, he adds. DBS's target price for Lenovo is currently under review. Shares are last flat at HK$9.57. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 00:34 ET (04:34 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0955648018.USD","symbol_name":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) INC MF","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2537905229","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2537905229","pubTimestamp":1747974840,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0434 GMT - The impact from tariffs on Lenovo's PC business could diminish in 2H, DBS analyst Jim Au says in a research note. Lenovo's China+1 strategy for PC manufacturing should help it mitigate future hits from U.S. tariffs, the analyst says. While macroeconomic headwinds may continue to dampen consumer sentiment toward PCs, the AI-driven replacement cycle could moderate overall impacts, he notes. DBS expects a surge in Lenovo's AI PC shipments by over 90% in fiscal 2026. Meanwhile, a recovery in its hardware segment's operating margin should begin in the September quarter as Lenovo ramps up its production in Vietnam. DBS maintains a buy call on Lenovo as its sustainable market share gains positions the company well within the AI adoption megatrend, he adds. DBS's target price for Lenovo is currently under review. Shares are last flat at HK$9.57. 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Lenovo's China+1 strategy for PC manufacturing should help it mitigate future hits from U.S. tariffs, the analyst says. While macroeconomic headwinds may continue to dampen consumer sentiment toward PCs, the AI-driven replacement cycle could moderate overall impacts, he notes. DBS expects a surge in Lenovo's AI PC shipments by over 90% in fiscal 2026. Meanwhile, a recovery in its hardware segment's operating margin should begin in the September quarter as Lenovo ramps up its production in Vietnam. DBS maintains a buy call on Lenovo as its sustainable market share gains positions the company well within the AI adoption megatrend, he adds. DBS's target price for Lenovo is currently under review. Shares are last flat at HK$9.57. (sherry.qin@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 23, 2025 00:34 ET (04:34 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}