Following Lenovo Group's (HKG:0992) announcement of fiscal 2012 results, in which the company reported a 73% increase in net profit, Credit Suisse has reduced its price target for the stock to HK$7.7 from HK$8.3 and trimmed fiscal 2013 EPS forecast for the stock by 7.2% on greater investments in MIDH (smartphones and smart TV) and a higher tax-rate.

The brokerage maintains its Outperform rating for the stock.

Lenovo will continue to deliver operating margin expansion, as its core PC business finds scale through share gains, Credit Suisse says in its research report. This year, the key focus is to amplify its MIDH's scale. For this, it will increase investments, potentially capping margin expansion, the brokerage says.

Source:chinesestock.org