Lenovo Facing Familiar Headwinds, And Still Frustrating Bulls

I’ve written more than once that Lenovo (OTCPK:LNVGY) needs a driver beyond its leading PC business to change sentiment on the shares. Unfortunately, both the mobile and enterprise businesses have taken backward steps, and issues like trade tensions with China still loom large. Against that backdrop, Lenovo’s ongoing strong execution in the PC business just doesn’t seem to matter, and the shares have remained weak.

Lenovo continues to look undervalued against what I see as undemanding expectations, including 2% overall revenue growth, declining gross margins, and scant long-term FCF growth. That’s been the case for some time, though, and I think the market will need to see peace on the trade front and some evidence of momentum in the mobile and/or enterprise businesses before getting more bullish.

Read the full article here:
Lenovo Facing Familiar Headwinds, And Still Frustrating Bulls