Lenovo Group Limited : Remarkable growth
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
HK$7.05 | HK$0 | HK$6.5 | -100% |
Basically, the company shows a remarkable growth with a turnover increasing on average by 20% per year, with an expected peak of 40% growth expected for 2012 to 29.25 billion dollars. The margin rate increased significantly from 1.1% in 2010 to 2.12% expected in 2013.
Thomson-Reuters consensus analysts is confident on this value. Indeed, they regularly revised upward their earnings per share targets and revenue.
Technically the stock showing strong growth, outperforming the Hong Kong index since the early 2011. An abrupt breakout from the support area of 6.61 HKD has just taken place but investors can join this movement to target in the area of 8.5 HKD (weekly resistance). A stop loss will be fixed below the HKD 6.5 short-term support.