---
title: "Morgan Stanley expects Meituan's new business losses to narrow in the first quarter, with a target price of 120 yuan, continuing to recommend \"overweight.\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280723928.md"
description: "Morgan Stanley released a report stating that Meituan's new business losses narrowed in the first quarter, with takeout and overseas business performance exceeding expectations. It is expected that core local business revenue will remain flat, with operating losses decreasing from RMB 10 billion to RMB 4.3 billion, and new business losses decreasing from RMB 4.7 billion to RMB 2.7 billion. The loss in takeout unit economics has reduced to RMB 1.3 per order. The target price is set at HKD 120, maintaining an \"Overweight\" rating"
datetime: "2026-03-27T03:08:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280723928.md)
  - [en](https://longbridge.com/en/news/280723928.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280723928.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280723928.md) | [繁體中文](https://longbridge.com/zh-HK/news/280723928.md)


# Morgan Stanley expects Meituan's new business losses to narrow in the first quarter, with a target price of 120 yuan, continuing to recommend "overweight."

Morgan Stanley published a research report indicating that Meituan (03690.HK) is showing signs of recovery in the first quarter of this year, such as improved unit economics in its delivery business and better-than-expected losses in its overseas operations. Market share has also been maintained, with the gap in unit economics compared to peers widening, while competitive pressure on the profitability of in-store business is also better than expected.

The firm estimates that core local business revenue in the first quarter will remain flat year-on-year, with operating losses narrowing from RMB 10 billion in the previous quarter to RMB 4.3 billion; losses from new business operations are expected to narrow from RMB 4.7 billion to RMB 2.7 billion. The expected unit economics for the delivery business is a loss of RMB 1.3 per order, compared to a loss of RMB 2 in the previous quarter; the average daily order volume for instant retail is 77 million orders. The operating profit margin for in-store, hotel, and tourism businesses is expected to stabilize at 25% quarter-on-quarter.

The firm has lowered its adjusted EBITDA forecast for 2026 by 53% to reflect the decline in core local business operating profits and increased overseas investments. It now sets a target price of HKD 120 and a "Buy" rating

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