Lenovo’s (LNVGY) market-leading PC business looks well-placed to continue being a cash cow for the business, but management’s forays into the data center (servers) and mobile have proven to be poor capital allocation decisions. Although the data center business can likely do better in the future and the mobile business could outperform on attractive model launches, management really needs to show tangible results from its “3S” strategy if it wants to get the benefit of the doubt and better valuation multiples.
While I thought Lenovo could be due for some underperformance when