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Morgan Stanley maintains overweight rating on Lenovo (00992.HK)BEIJING, May 23, 2013 (Xinhua via COMTEX) -- Morgan Stanley on Thursday reiterated an overweight rating on Lenovo Group (00992.HK; LNVGY.PK), China's biggest personal computer (PC) maker, after Lenovo reported strong results for the fourth fiscal quarter ended March 31, 2013. Lenovo on Thursday announced its net profits jumped 90 percent year-over-year to 127 million US dollars for the fourth fiscal quarter due to its rapid PC-plus transformation and effective cost control. Morgan Stanley said that Lenovo's upbeat operating margin once again corroborated the house's view of Lenovo's high potential profit margins, and reflected Lenovo's strong execution despite a challenging macro-economic environment. Lenovo's operating profit margin was around 2.16 percent for the fourth fiscal quarter, according to Xinhua's calculation based on Lenovo's earnings report. Morgan Stanley expected Lenovo to have a one-year forward price-to-earnings ratio of 13 times, close to the low end of historical range 10 times and 25 times. (Edited by Ding Lei, [email protected]) |