BofA Securities cut Lenovo’s target price, downgraded to Neutral from Buy

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Lenovo Group’s commercial PC business may fare better than its consumer PC business, but the economic downturn may result in tightened client budgets, which could in turn hinder the group’s growth momentum, said BofA Securities in a note on Thursday.

The bank lowered the forecast of Lenovo’s fiscal year2023-25 earnings by 3% – 11% and slashed the target price for the stock from $9.7 to $6.5.

The rating for the stock was downgraded from Buy to Neutral to reflect the increasing uncertainties surrounding the commercial PC business, inventory and foreign exchange risks, which constitute profit margin headwinds, it said.