Analyst Saiyi He of CMB International Securities maintained a Buy rating on Meituan, reducing the price target to HK$141.00.
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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 intensified competition in the food delivery sector, Meituan has managed to maintain a strong market share in high-value orders. This indicates the company’s ability to sustain its competitive edge and profitability over time. Additionally, the moderation in industry competition suggests that Meituan’s investments in the food delivery segment have peaked, potentially leading to improved financial performance in the future.
Moreover, Meituan’s efforts to enhance user engagement and mindshare among its core user base are expected to support its long-term growth trajectory. The company’s new initiatives, such as the expansion of Keeta, have shown promising results, with improved operating efficiency and profitability ahead of schedule. This demonstrates Meituan’s capability to replicate its successful business models in new regions, further driving value creation. These strategic moves, combined with the company’s robust market position, underpin Saiyi He’s optimistic outlook and Buy rating for Meituan’s stock.
He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings , and Iqiyi. According to TipRanks, He has an average return of 13.1% and a 56.29% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$130.00 price target.