0338 GMT - Lenovo's shares could be weighed by tariff headwinds in the near term, Morningstar analyst Kazunori Ito says in a research note. That is even as he thinks the market has overreacted to the PC maker's 4Q profit miss, which sent the stock 5.4% lower Thursday. Ito notes that Lenovo plans to transfer its PC production for U.S. exports to Vietnam by September, which will limit the direct tariff impact. Morningstar trims Lenovo's fiscal 2026 operating margin forecast to 3.6% from 3.8%. It also lowers its PC shipment forecasts for Lenovo in fiscal 2027 to account for slowing demand in the U.S. due to increased pricing after tariffs, a weaker macroeconomic environment amid U.S.-China trade tensions and fading replacement demand. Shares are last 1.8% lower at HK$9.33. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
May 25, 2025 23:38 ET (03:38 GMT)
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