BOCI Cuts MEITUAN-W TP to $164; Rivalry Heightens Despite Offline Consumption Rebound

BOCI reaffirmed a Buy rating for $MEITUAN-W(03690.HK)$ but reduced its target price to $164 from $183. This adjustment reflects narrower losses in new initiatives and reduced profit margins in core local commerce.

$MEITUAN-W(03690.HK)$ reported a 22.6% revenue increase to RMB73.7 billion in 4Q23, driven by robust growth in in-store, hotel, and travel services amid a resurgence in offline consumption.

However, BOCI warned of intensifying competition in the market, suggesting heightened rivalry despite the recovery in offline consumption.