Goldman Sachs Raises Price Target for Meituan Dianping Stock After Strong Q2 Earnings Report
Goldman Sachs has adjusted its outlook on Meituan Dianping (3690:HK) stock, increasing the price target to HK$157.00 following the company's robust second-quarter earnings report. The firm sustained a Buy rating as Meituan exceeded expectations with a 21% year-over-year revenue increase and a 126% surge in adjusted EBIT. Analysts anticipate continued growth in food delivery volumes and improved unit economics, leading to a positive future outlook.
Meituan's strategic initiatives, such as Meituan Group Buy and investments in lower-tier markets, have contributed to its strong performance. The company recently reported a 21% revenue increase year-over-year and a 77.6% surge in adjusted net profit. Despite a decline in average order value for their on-demand delivery business, Meituan remains optimistic for the future and plans to continue focusing on core local commerce collaborations.
InvestingPro Insights indicate that Meituan has a market capitalization of approximately $89.66 billion and has shown significant revenue growth and EBITDA increase over the last twelve months. With a P/E ratio of 28.92 and a solid financial position, Meituan presents an attractive investment opportunity. Analysts have revised their earnings upwards, reflecting a consensus view of the company's promising financial trajectory.
Overall, Meituan's strong performance, strategic initiatives, and positive outlook make it a compelling investment option for those looking to capitalize on the company's growth potential in the market.