[ET Net News Agency, 24 August 2020] Nomura raised its target price for Meituan
Dianping (03690) to HK$300 from HK$122 and upgraded its rating to "buy" from "neutral".
The research house said Meituan's total revenue was 5% above the Bloomberg consensus, on
higher revenue in all business lines. Non-GAAP operating margin expanded 1.3pp to 6.8%
versus Nomura's estimate of a decline of 1.6%.
The COVID-19 pandemic has accelerated the migration of grocery purchases to online
channels. Meituan plans to seize this structural opportunity by ramping up investments in
this field. Nomura raised its FY2020/21 revenue by 2%/6% and operating margin by
2.3pp/4.8pp. (KL)