Lenovo's Infrastructure Business Could Sustain Operating Margin
Dow Jones
Aug 18
0649 GMT - Lenovo's infrastructure business could sustain its operating margin in the near term, UOB Kay Hian analysts say in a research note. The segment's operating margin expansion is underpinned by better profitability in its products for enterprise and small and medium businesses, better scale, as well as the mounting bargaining power given the supply shortages, they note. Although management guided for a high single-digit margin for FY 2027, UOB thinks it could top the fiscal 1Q's 9.1%. UOB raises Lenovo's target price to HK$49.00 from HK$32.80. Shares are last at HK$31.22.
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