Lenovo upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Howard Kao upgraded Lenovo to Overweight from Equal Weight with a price target of HK$15, up from HK$9.10. Lenovo has been “an underappreciated stock,” but the firm sees significant upside as AI PCs are starting to ramp and it sees a growing AI server pipeline, leading it to make Lenovo “Top Pick” among the analyst’s coverage. AI PCs will help drive average selling price increases as well as higher profit/box for the PC OEMs, says the firm, which sees Lenovo as “the main beneficiary in Asia.”