Saiyi He, an analyst from CMB International Securities, reiterated the Buy rating on Meituan. The associated price target is HK$164.00.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Meituan’s strategic positioning and potential for long-term growth. Despite facing intense competition in the food delivery sector, Meituan is actively seeking efficient strategies to maintain its market share. The company is leveraging models like Shenqiangshou and Pinhaofan to meet consumer demands for value, which is expected to help sustain customer loyalty and order volume even as subsidies decrease.
Moreover, Meituan’s new initiatives have shown promising results, with a narrower-than-expected operating loss in the second quarter, driven by improvements in operating efficiency and strategic business adjustments. The company’s focus on enhancing its grocery retail and overseas businesses, alongside a strategic transformation of Meituan Select, is anticipated to reduce losses further. These efforts, combined with Meituan’s strong operational capabilities and fulfillment network, underpin Saiyi He’s positive outlook on the company’s ability to navigate current industry challenges and achieve sustainable growth.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$171.00 price target.