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<Research>JPM: MEITUAN-W (03690.HK) Shr Price Overreacted Ytd; Investors Recommended to Buy on Dips
Recommend 23 Positive 79 Negative 33 |
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MEITUAN-W (03690.HK)'s share price slumped by 7% yesterday (20th), which is believed to be the market overreaction to the Company's announcement of paying social security for its riders, JPMorgan released a research report saying. The social security benefits are currently expected to be rolled out gradually over the next few year. Therefore, the financial impact on the Company in the next few years will be controllable, with insignificant impact on profits in the short term. JPMorgan predicted that the profit per order of MEITUAN-W's food delivery business should maintain a steady growth trend, and suggested that investors should buy on dips as the broker is looking forward to more clear guidance from the management in the Company's 4Q24 results to ease investors' worries, which is expected to serve as a catalyst for its share price. Despite the outperformance of MEITUAN-W in 2024, the broker forecasted that there is still room for upside in the next 6-12 months, and kept rating at Overweight, with a target price of $200. AAStocks Financial News |
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