"Big Banks" UBS: Meituan's short-term profitability is uncertain, but its moat remains solid

UBS report indicates that the bank conducted a non-deal roadshow with Meituan (03690.HK) capital markets head Xu Sijia and the investor relations team. After the meeting, although the bank acknowledged the uncertainty of the company's short-term profitability under the current competitive landscape, it remains optimistic about Meituan's strong moat, solid consumer mind share, and its differentiated supply-side innovations (such as Raccoon Kitchen and Flash Purchase). The overseas initiative "Keeta" is also a potential upside factor that has not yet been reflected in the stock price.

The bank has given Meituan a "Buy" rating with a target price of 128 yuan