[ET Net News Agency, 25 August 2020] Daiwa Research lifted its target price for Meituan
Dianping (03690) to HK$300 from HK$155 and maintained its "buy" rating.
Following its 2Q results, the research house is more positive on Meituan's financial
outlook for 2H and 2021. Daiwa believes the COVID-19 pandemic is a major catalyst for
Meituan, as its food delivery business is likely to benefit from structural changes in
terms of supply-chain optimisation in 2020-2021.
Meituan's share price is up by 275% in the past 12 months, but Daiwa sees any
share-price declines due to profit-taking as a further opportunity to accumulate the
stock. It also sees potential upside risk in its GTV (gross transaction value) estimates,
which would likely lead to better-than-expected unit economics in 2H and 2021. (KL)