Tiger Brokers

Morgan Stanley Maintains Meituan Target Price at HK$120, Citing Faster-Than-Expected Loss Reduction

Deep News
Jun 02

Morgan Stanley has stated that the narrowing losses in Meituan's instant delivery business are a positive development, and it anticipates the food delivery unit's unit economics will reach breakeven in the second quarter. However, the company's in-store business is facing competitive pressures. The firm maintains an Overweight rating on the company with a target price of HK$120.

Analysts including Gary Yu at Morgan Stanley noted in a report that they expect Meituan's second-quarter losses to widen slightly quarter-over-quarter, primarily due to the expansion of its Xiaoxiang Supermarket and investments in Keeta.

While the in-store business remains stable for now, the analysts see downside risks to profitability from intensifying competition with Douyin.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10