Jingu Finance News | Daiwa's research report pointed out that Meituan (03690) will benefit from the recovery in consumer spending in the food delivery and local services business. Despite the recent outperformance of the stock price compared to the market, leading to its valuation being higher than peers, Daiwa reiterated a "buy" rating on Meituan and raised the target price from HKD 160 to HKD 235. Daiwa also raised Meituan's revenue forecasts from 2024 to 2026 by 2%, and considering operating leverage, increased earnings per share forecasts for the same period by 3% to 5%.

Daiwa also 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 in local business services further stabilizes, Meituan's valuation is likely to be reevaluated. In addition, if mainland policies stimulating consumption yield results next year, Daiwa sees further room to raise profit forecasts for Meituan.