Goldman Sachs cut target price on Meituan to HK$235 from HK$275, rating kept at Buy
COMPANY NEWS STOCKS VIEWS & ANALYSIS
Goldman Sachs cut target price on Meituan to HK$235 from HK$275, rating kept at Buy
COMPANY NEWS STOCKS VIEWS & ANALYSIS

Goldman Sachs cut target price on Meituan to HK$235 from HK$275, rating kept at Buy

 

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Goldman Sachs pushed back its estimate of recovery timing of Meituan’s businesses by roughly one year, in view of the epidemic resurgence in China during winter which impeded in-store activities, but with potential relaxation from the second quarter of 2023. 

Ahead of Meituan’s results for the third quarter of 2023, Goldman Sachs forecast its revenue to gain 25% year over year and adjusted EBIT to break even. 

The bearishness amid pandemic was expected to persist till the fourth quarter of this year and the recently feeble share price is attributable to market concerns on macro economy and epidemic recovery, said the bank.