Morgan Stanley Upgrades Lenovo Rating to Buy, Sets HK$30 Target Price on July 10

According to Morgan Stanley, on July 10, the investment bank upgraded Lenovo Group's rating from Neutral to Buy, raising its target price from HK$14.20 to HK$30.00, representing approximately 34% upside from the July 8 closing price of HK$22.32. The analyst Howard Kao attributed the upgrade to AI-driven demand fundamentally reshaping memory market supply and demand dynamics, allowing Lenovo to pass higher component costs to customers while maintaining profit margins.
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