DBS Group Research maintained a bullish view on Meituan, citing its leading
position in food delivery and early progress in overseas markets. This comes
despite near-term earnings pressure and guidance for core local commerce revenue
to be flat or slightly down in 1Q, which was in line with expectations. The
The company also expects narrower losses in its new initiatives segment, supported
by improved unit economics in Saudi Arabia. DBS said shares could re-rate if
regulators provide clearer guidance on ending subsidy competition in food
delivery, and kept its buy rating while reviewing its HK$130 target price.
