Daiwa raised its revenue forecast for Meituan from next year to 2026 by 2%, taking into account operating leverage, also raising its earnings per share forecast for Meituan from next year to 2026 between 3% and 5%.
According to Zhixun Finance and Economics APP, Daiwa released a research report stating that Meituan (03690) could benefit from the consumption recovery in its food delivery and local service business, with recent stock price outperforming the market leading to higher valuation than its peers. The bank reiterated a 'buy' rating on the company, increasing the target price from HK$160 to HK$235.
Daiwa raised its revenue forecast for Meituan from next year to 2026 by 2%, taking into account operating leverage, also adjusting its earnings per share forecast for Meituan from next year to 2026 to between 3% and 5%. The bank added that Meituan's current valuation is equivalent to a forecasted PE ratio of 20 times next year, with a PE growth rate of only 0.6 times. If the competitive landscape of local business services further stabilizes, there is potential for a valuation reassessment. If mainland stimulus policies for consumption take effect next year, the bank sees room for upward revision of Meituan's next year forecast.
