In a report released yesterday, Lei Yang CFA from CGS-CIMB reiterated a Buy rating on Meituan (MPNGF – Research Report), with a price target of HK$166.00.
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Lei Yang CFA’s rating is based on Meituan’s strong financial performance and strategic initiatives. In the first quarter of 2025, Meituan reported a significant increase in revenue and adjusted net profit, driven by improved margins in its local commerce sector and effective operational expense management. Despite a forecasted decline in net profit for the second quarter due to increased subsidies, the company is expected to maintain its market leadership in China’s food delivery sector, supported by its extensive delivery network and merchant base.
Additionally, Meituan’s global expansion efforts, particularly its entry into Brazil’s food delivery market, are seen as a new growth driver. The company’s success in other regions, such as Hong Kong and the Middle East, further bolsters confidence in its international strategy. While short-term financial results may be volatile due to increased investments and subsidies, Lei Yang CFA believes that Meituan’s long-term prospects remain strong, justifying the Buy rating.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$171.00 price target.