Macquarie downgrades Didi to Neutral on profitability drag

Macquarie downgraded Didi Global (DIDIY) to Neutral from Outperform with a price target of $3.90, down from $9.30, following the Q4 report. The company’s profitability is being “significantly dragged” by Didi’s food delivery business expansion in Brazil, the analyst tells investors in a research note. The firm sees no near-term catalysts for the shares given Didi’s “significant” spending and limited visibility toward a Hong Kong initial public offering.