[ET Net News Agency, 24 October 2019] UBS Global Research lifted its target price for
Meituan Dianping (03690) to HK$110 from HK$82 and maintained its "buy" rating.
The research house expects Meituan to report Rbm344m of overall operating profits in 3Q
with Rmb150m coming from the food delivery business (all non-IFRS), compared to previous
estimates of breakeven and Rmb793m loss respectively.
UBS believes food delivery profitability is a key inflection point, which along with
Meituan likely joining HKEX's Southbound Stock Connect program as early as late October,
should bring in more long term investors. (KL)