The analyst rating was influenced by LENS's loss in the first quarter of 2026 due to increased operating expenses and foreign exchange losses. BofA Securities expects these challenges to continue in the short term, particularly with weak orders from Android customers. However, the company is anticipated to benefit from iPhone specification upgrades and expansion into new businesses in the long term. As a result, the broker lowered its earnings forecasts and target price for LENS's H-shares but maintained a 'Buy' rating, while downgrading the A-shares rating to 'Underperform' due to high valuation.
