UBS maintains a positive outlook on MEITU with a target price of 14.1 yuan, urging "buy."

The UBS research report pointed out that Google recently launched the image editing and generation model "Nano Banana," while MEITU (01357.HK) saw its stock price decline yesterday (September 1). The firm believes that the volatility mainly reflects investors' concerns about the potential industry disruption brought by AI technology after seeing positive market feedback for the model.

The report stated that MEITU had previously emphasized that its strategy has shifted to focus on vertical model training and application scenario development. The firm believes that the company's strategy aims to leverage its product design, user experience, and deep understanding of workflows in vertical fields to directly translate the rapid iteration of foundational models into advanced product features that users need. At the same time, it is expected that the continuous evolution of model capabilities will expand the overall size of the graphic design market. The firm maintains a positive attitude towards the company and will continue to monitor its app revenue and monthly active users, currently setting a target price of 14.1 yuan with a rating of "Buy."