Meituan's Food Delivery Business to Continue to Improve
Dow Jones
7 hours ago
0740 GMT - Meituan's food delivery business is likely to continue to improve, according to HSBC analysts in a research note. "The pace at which Meituan's food delivery loss has improved in 2Q surprised on the upside," they note. While order growth could turn negative year-over-year in 3Q on a high base of comparison, continued average order value improvement can drive better unit economics as Meituan continues to rein in user subsidies, the bank says. HSBC keeps a buy rating and raises its target price for Meituan to 110.00 Hong Kong dollars from HK$104.00. Shares last traded at HK$79.05.
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