Lenovo reaches seven-year high

PUBLISHED : Saturday, 03 November, 2007, 12:00am
UPDATED : Saturday, 03 November, 2007, 12:00am

Shares in Lenovo Group, the nation's largest computer maker, rose 2.22 per cent yesterday to a seven-year high in Hong Kong trade after it beat earnings forecasts for the second quarter to September.

The shares yesterday closed at HK$8.74.

Lenovo's shares fell 6.8 per cent in early morning trading yesterday to HK$7.97 on concern that its earnings failed to justify the doubling of the stock's price over the past five months. However the stock climbed to an intraday high of HK$9.01 in the late morning after several brokers revised up their target prices.

Goldman Sachs yesterday said its profit forecast and price target was under review after the company delivered stronger than expected interim results.

Citi lifted its price target to HK$12 from HK$10 and raised its profit forecast for the year to March 2009 by 10 per cent.