---
title: "JP Morgan maintains a \"Neutral\" rating on Meituan, with a highly uncertain long-term outlook for food delivery"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282274227.md"
description: "JP Morgan maintains a \"Neutral\" rating on Meituan, with a target price of 85 yuan. The report points out that the mainland government's restrictions on takeaway subsidies have sparked discussions about Meituan's prospects. Despite the presence of regulatory factors, the profitability of takeaway services remains highly uncertain. Meituan's profitability relies on order quality, with orders above 30 yuan being profitable, while orders below this price lead to losses. Assuming market share drops from 75% to 50%, the operating profit per order may actually be higher"
datetime: "2026-04-10T01:51:09.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282274227.md)
  - [en](https://longbridge.com/en/news/282274227.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282274227.md)
---

# JP Morgan maintains a "Neutral" rating on Meituan, with a highly uncertain long-term outlook for food delivery

JP Morgan published a research report indicating that the mainland government has released signals to limit the subsidy war for food delivery, sparking discussions among investors about the prospects of Meituan (03690.HK). The bank believes that regulatory catalysts do exist, but the long-term profit pool for food delivery carries a high degree of uncertainty, and currently, Meituan's stock price does not provide sufficient margin of safety. The bank now sets a target price of 85 yuan and maintains a "neutral" rating.

The report mentions that the market is currently judging Meituan's prospects based on market share, but after in-depth analysis, the bank found that market share is not directly proportional to profitability and may even be inversely proportional. Meituan's food delivery profitability mainly depends on the quality of orders rather than the quantity of orders; the company needs to dominate orders with an average price above 30 yuan to generate profits, while orders below 30 yuan will incur structural losses on any platform. In a scenario where Meituan's overall market share drops from 75% to 50%, the operating profit per order would actually be higher than in a scenario where the market share is 65%, because the number of loss-making orders decreases

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