If Apple makes a foldable phone, analysts say this stock will benefit

Chinese glass maker Lens Technology recently raised HKD 4.77 billion ($610 million) in its Hong Kong IPO, with hedge fund magnate Steve Cohen acquiring an 8.41% stake. Analysts from Citi and UBS view Lens Tech as a primary beneficiary of Apple's anticipated foldable iPhone, projecting significant revenue contributions (up to 12% by 2027) and issuing 'Buy' ratings with raised price targets. The company plans to allocate 30% of IPO proceeds to foldable screen development and expand overseas capacity, positioning itself for growth in advanced mobile tech while diversifying its client portfolio.

Analysis

Lens Technology's recent Hong Kong IPO, which raised $610 million (4.77 billion HKD), has strategically positioned the company as a key speculative play on Apple's anticipated entry into the foldable device market. Analyst consensus is strongly bullish, with both Citi and UBS initiating or upgrading coverage to 'Buy'. Citi projects that a foldable iPhone could contribute 5% of Lens Tech's revenue in 2025 and 12% by 2027, setting a price target with nearly 25% upside. This optimism is reinforced by a significant 8.41% stake acquired by hedge fund magnate Steve Cohen, signaling strong institutional confidence. The company is proactively fueling this growth narrative by allocating 30% of its IPO proceeds to foldable screen development. Beyond the primary Apple catalyst, Lens Technology is mitigating risk by diversifying its customer base to include major EV makers and expanding its manufacturing footprint into Vietnam and Thailand to sidestep direct US tariff impacts. Furthermore, UBS highlights potential for at least 20% annual earnings growth in 2026-2027 driven not only by foldables but also by emerging demand for AI glasses and robotics.

Key Decisions for Investors

• Given the strong 'Buy' ratings from major banks, a significant hedge fund investment, and a clear growth narrative tied to the foldable market, investors could consider the stock a strategic vehicle for gaining exposure to this next-generation mobile technology.
• The investment thesis is heavily contingent on an unconfirmed foldable iPhone, meaning investors must closely monitor supply chain news and official Apple announcements, as any delays or cancellation of the project represents the single largest risk to the stock's projected growth.
• Pay close attention to the company's execution on its diversification strategy, specifically tracking its revenue growth from non-Apple customers and progress on expanding its overseas production capacity, which are key to de-risking the investment from customer concentration and geopolitical tensions.