[ET Net News Agency, 26 August 2020] Credit Suisse lifted its target price for Meituan
Dianping (03690) to HK$300 from HK$139 and retaiend its "outperform" rating.
The research house said Meituan's 2Q adjusted net profit of Rmb2.7bn was significantly
ahead of Credit Suisse's (Rmb587mn) and consensus (Rmb40mn). It said the result reaffirms
several positive drivers including (1) Meituan's solid leadership in food delivery despite
competition; (2) acceleration of on-line adoption post COVID-19; (3) monetisation upside
from its food delivery business from several triggers; and (4) steady cash flow coming
from both food delivery and in-store.
Credit Suisse raised its 2020/21 by 72%/25%. (KL)