---
title: "Stock in Focus | Meituan Drops Over 5% as Morgan Stanley Downgrades Rating and Target Price"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/304795656.md"
description: "Meituan was downgraded by Morgan Stanley to \"Equal-weight,\" with its target price cut from HK$110 to HK$90, causing the stock to fall more than 5%. Morgan Stanley pointed out that China's e-commerce industry has entered a phase of structural low growth, and intensifying competition will erode mature market dividends. It forecasts that the compound annual growth rate (CAGR) of platform gross merchandise volume (GMV) from 2026 to 2030 will be only 3.2%, with weak signs of industry consolidation"
datetime: "2026-11-09T03:45:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/304795656.md)
  - [en](https://longbridge.com/en/news/304795656.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/304795656.md)
generator: "portal-rs"
---

# Stock in Focus | Meituan Drops Over 5% as Morgan Stanley Downgrades Rating and Target Price

Meituan (03690) saw its rating and target price downgraded by Morgan Stanley, leading to a drop of over 5% in its share price. At its lowest, the stock fell 5.6% to HK$75.9.

As of 11:38 am, the stock was trading at HK$76.05, down 5.4%, with turnover exceeding HK$2.72 billion.

Morgan Stanley stated that China's e-commerce industry is losing growth momentum, yet competitors are not decreasing. Continued competition may consume the "mature market dividends" anticipated by the market. Consequently, Morgan Stanley downgraded Meituan (03690) to "Equal-weight" and reduced its target price by 18%, from HK$110 to HK$90.

In its report, Morgan Stanley noted that China's e-commerce industry is entering a phase of structural low growth. It projects that the compound annual growth rate (CAGR) of platform gross merchandise volume (GMV) from 2026 to 2030 will be only 3.2%, slowing further to 2.6% by 2030. Unlike typical mature industries, there are almost no signs of consolidation in China's e-commerce sector. Cash-rich platforms continue to defend their core businesses while simultaneously entering competitors' markets.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**