[ET Net News Agency, 8 July 2020] Jefferies Research lifted its target price for
Meituan Dianping (03690) to HK$228 from HK$151 and maintained its "buy" rating.
The research house considers the food delivery market is a long-term secular trend
amidst low penetration and Meituan's "food plus platform" strategy targeting a mass
audience with high-frequency services.
It creates a strong self-reinforcing ecosystem covering 450m annual transacting users
and over 6m merchants. Jefferies raised its long-term earnings assumptions to 36% from
2021-2030 (versus prior 31%) and assigned a 10% premium to its valuation on its long-term
opportunities post COVID-19. (KL)