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<Research>Nomura Slashes MEITUAN-W (03690.HK) TP to $176, Keeps Rating at Buy, Expects Intense Competition Unlikely to Last Over Yr
Recommend 70 Positive 134 Negative 66 |
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MEITUAN-W (03690.HK)(MPNGY.US)'s 1Q25 revenue/ non-GAAP operating profit rose 18%/ 62% YoY, beating market consensus, Nomura released a research report saying. However, the Group said that, starting from 2Q25, it will increase competitive spending on food delivery and instashopping, which may significantly impact the revenue and profit of these businesses. The Group added that the decision to raise competition is due to BABA-W (09988.HK)(BABA.US)'s entry into competition. Therefore, the broker slashed its target price from $200 to $176, with rating kept at Buy. Nomura believed that, although it is currently difficult to predict the direction of this wave of competition, highly intense competition is unlikely to last over a year. The competition largely depends on whether JD is willing to maintain such a high cash burn rate. The broker expected that the actions of BABA-W and MEITUAN-W are more defensive, mainly in response to JD-SW (09618.HK)'s aggressive investment in this field since April. AASTOCKS Financial News Website: www.aastocks.com |
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