--- title: "Citi Cuts DiDi Global Inc. TP to USD6.6, Adjusts Earnings Forecasts; Rating Buy" type: "News" locale: "en" url: "https://longbridge.com/en/news/288663041.md" description: "Citi cut DiDi Global's target price to USD6.6 from USD7.3, maintaining a Buy rating. The bank adjusted earnings forecasts upward for 2026-2028, citing solid Q1 results and improving margins in China mobility. Management highlighted peaking losses in international food delivery and optimistic profit guidance for international operations by 2028. Citi believes growth prospects are improving despite sector valuation de-rating." datetime: "2026-06-04T04:05:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288663041.md) - [en](https://longbridge.com/en/news/288663041.md) - [zh-HK](https://longbridge.com/zh-HK/news/288663041.md) generator: "portal-rs" --- # Citi Cuts DiDi Global Inc. TP to USD6.6, Adjusts Earnings Forecasts; Rating Buy Citi issued a report stating that DiDi Global Inc. (DIDIY.US) delivered solid results for 1Q, with total revenue rising 10.3% YoY to RMB58.7 billion, 1% above both market and Citi expectations. EBITA margin of its core China mobility business reached 4.6%, exceeding forecasts. Looking ahead to 2Q26 and the full year, management is confident in maintaining guidance for transaction volume and EBITA margin of the China mobility segment, and reiterated that investment and losses in the international food delivery business had peaked in 4Q last year, with the loss ratio set to further improve from 1Q26 levels. In addition, management highlighted its 2028 outlook, expecting international gross transaction value to reach RMB300 billion, with both mobility and fintech segments projected to generate USD300 million in profit each. After adjusting earnings forecasts and considering recent sector valuation de-rating, Citi adopted a lower 9x enterprise value-to-EBITA multiple for the China mobility business, cutting the TP from USD7.3 to USD6.6 while maintaining a Buy/High Risk rating. The broker believes growth prospects and margin trajectory are improving. Despite macroeconomic volatility, DiDis China mobility business has demonstrated resilience, supported by its essential service nature, high electric vehicle penetration (over 70%) which limits sensitivity to oil price fluctuations, and its strengthening leading platform position. Average order value per ride has achieved positive YoY growth for two consecutive quarters. Demand for premium services grew 30% YoY, while order growth from premium members outpaced the average. Management reiterated its 2026 guidance. Citi forecasts YoY growth of 8.4%, 8.9% and 9.1% in order volume, gross transaction value and revenue, respectively, with EBITA accounting for 4.2% of gross transaction value. DiDi is strategically expanding into Brazils food delivery market, leveraging significant synergies with its existing mobility operations. Management believes the company is expanding the market by bringing new offline merchants online. Although the segment is currently loss-making, management indicated that losses have peaked and expects a marked improvement in the full-year 2026 loss ratio as rapid business expansion continues. Management provided optimistic profit guidance for its international operations, expecting the mobility business to generate more than USD300 million in profit by 2028. The international fintech segment is projected to break even in 2026, deliver meaningful profit in 2027, and achieve over USD300 million in profit in 2028. Citi forecasts international gross transaction value to reach RMB180 billion, RMB239.5 billion and RMB300 billion in 2026, 2027 and 2028, respectively. The broker also raised its net income forecasts for 20262028 by 0.8%, 1.3% and 1.7%, respectively, and adjusted earnings estimates, projecting non-IFRS net profit of RMB419 million, RMB6.48 billion and RMB12.9 billion for the respective years. 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