Deals
Lenovo’s Downward Spiral May Not Be Over Yet
- Analysts say they don’t buy its plans to stop the bleeding
- Founder Liu Chuanzhi openly admits to a series of mis-steps
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In four years, Lenovo Group Ltd. went from would-be Apple Inc. challenger to an also-ran in smartphones and datacenter servers. Now it’s got a comeback plan, but some investors don’t buy it.
China’s erstwhile tech darling, which lost its perch atop the PC market to HP Inc. in 2017, has shed two-thirds of its value since hitting a 15-year high in 2015. At a two-year earnings multiple of about 10 times, its stock is cheapest among the world’s largest computer makers. Yet all seven analysts ranked best by Bloomberg based on one-year returns urge investors to sell. Their average target puts Lenovo 13 percent below Tuesday’s close.