The Zhitong Finance app learned that on November 2, Beijing time, Daiwa Capital (Daiwa Capital) updated its report and raised the target price of DDL.US to 33 US dollars.

According to the report, “In 2022, the total commodity transaction gap between other competitors and Dingdong Grocery Shopping may widen further. Coupled with the continuous decline in Dingdong Grocery Shopping's cash consumption rate, it will drive the secondary market to revalue Dingdong Grocery's stock price in the near future.”

Daiwa Securities predicts that the total amount of commodity transactions and total revenue of Dingdong Grocery Shopping in the third quarter of this year will increase by about 101% year-on-year. At the same time, driven by improvements in the economic conditions of front-end warehouses in Shanghai and other cities, user acquisition costs are close to reasonable, and cities with mature businesses may achieve balance of income and expenditure. The company's non-GAAP net loss margin will also narrow in the third and fourth quarters.

Furthermore, considering the competitive aspect of the fresh food market, some small community group buying players are also reducing the scale of operations or withdrawing from the market, and the scale and operation of Dingdong Grocery Shopping is more stable. Based on these factors, Daiwa Securities raised the target price for shopping groceries in Dingdong from $30 to $33.

Previously, the Daiwa Securities Rating Report covered Dingdong Grocery Shopping for the first time and gave a buying rating. At the same time, the report acknowledged the development prospects of Dingdong Grocery Shopping, believing that Dingdong Grocery Shopping had a sufficiently large scale advantage. At the same time, the GMV growth rate is high and the order density is high, so there is hope that a break-profit balance will be achieved soon.