联想集团(0992.HK)：Sustainable growth ahead, Outperform，TP up to HK$6.3

机构：麦格理

评级：买入

目标价：6.3港元

Key points 

We are raising our target price to HK$6.3 on improving fundamentals and a valuation re-rating. We are raising FY19–21E EPS rep 5% / 5% / 8%. 

As highlighted in January, we believe Lenovo is heading in the right direction, with profitability improving across all business lines. 

The shares are up 24% YTD (vs HSI Index -12%). We are positive on Lenovo given we see fundamental sustainable growth and 5% div yields. 

Price catalyst 

12-month price target: HK$6.30 based on a Price to Book methodology. 

Catalyst: 2Q FY19 results. Action and recommendation 

We maintain an Outperform rating.