The tech hardware giant, with the largest share of 23.5% in the global PC market, is transforming into a service-led company by leveraging the world’s largest active PC user base of about 218 million and its strong reputation in hardware products, channelling growth into the services and solutions business.
DBS Group Research is reinstating its coverage on Hong Kong listed hardware giant Lenovo Group with a “buy” and target price of HK$11.30, following the group’s latest transformation strategy, which analysts Jim Au and Tsz Wong Tam believe will bring about a promising outlook for the company.
“We re-instate coverage on Lenovo with a ‘buy’ rating due to the new services and solutions business driver not being priced in, its net margin gap with its peers narrowing, and an undemanding valuation of a 6.0x FY2022 PE,” say the analysts.
