The Week

Meituan (MPNGY) rose 3.87% this week to $20.785, beating the S&P 500 by about 3.78 percentage points. The week started soft: shares opened Monday at $20.15 and slipped to a low of $19.33 on Tuesday, before a steady climb. Friday saw a close at $20.785, near the week’s high of $20.85. The weekly range came to 7.54%. Average daily volume of roughly 279k shares was well above the 151k median.

Key Events

The week was dominated by post-earnings reactions. On Monday, Meituan opened 2.5% higher after its second-quarter results beat estimates. JPMorgan upgraded the stock to overweight with a HK$100 target, while Citi, Daiwa and Nomura adjusted their targets. Morgan Stanley cut its target to HK$107 but kept an overweight rating. Meituan said food delivery subsidies would take several quarters to normalise and guided for positive per-order unit economics in the third quarter of 2026. Late Monday, a Prosus Brazil unit filed an antitrust complaint against Meituan. On Tuesday, the company denied operating a ‘token factory’ or similar. Citi reiterated its buy rating on Thursday. On Friday, the broader Hong Kong market rallied sharply, with Meituan-W up more than 5%.

Analyst Ratings

Broker coverage skews positive. The consensus rating is strong buy, with a consensus target of $26.22, roughly 26.15% above the current price of $20.785. The ratings data does not provide a target range, but the aggregate points to an upward bias. No sell or underweight ratings were recorded. Adjustments this week were mixed in direction but largely maintained constructive ratings.

The Week Ahead

US data arrives next week: the NFIB small business optimism index on Tuesday, followed on Thursday by initial jobless claims, final demand PPI and existing home sales. These releases could shift sentiment for Chinese ADRs broadly. For Meituan specifically, the pace of subsidy normalisation and progress towards positive per-order unit economics remain the key items to watch.

In Short

Meituan outperformed the S&P 500 this week against a backdrop of an earnings beat and constructive broker ratings. On valuation, the stock trades around 2.58x book value, while its P/E is negative on a trailing-twelve-month basis, reflecting as-yet incomplete profit recovery. No meaningful capital flow data was available for the latest session. The next test is whether per-order unit economics turn positive in the third quarter, which would shape how much of the gap to the $26.22 consensus target can close.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.