Goldman Sachs lowers Meituan's target price to 112 yuan, rating "Buy"

Goldman Sachs released a research report, predicting that Meituan (03690.HK) will see a 4% year-on-year increase in revenue for the fourth quarter of last year, with an adjusted EBITDA loss of RMB 15.5 billion. Due to the offsetting effect of increased user subsidies, core local e-commerce revenue is expected to have zero growth year-on-year.

The bank expects a significant loss in core local e-commerce EBITDA for the fourth quarter of last year, reaching a loss of RMB 10 billion, primarily due to increased user subsidies and more support for food delivery merchants. The bank forecasts that the EBITDA for physical stores, hotels, and tourism in the fourth quarter will be RMB 4.3 billion, with a total group loss of RMB 14 billion for the fourth quarter.

The bank has adjusted its adjusted profit forecasts for the company for last year, this year, and next year upwards by 1%, downwards by 32%, and downwards by 9% respectively, lowering its target price from HKD 120 to HKD 112, with a rating of "Buy."