Morgan Stanley Raises MEITUAN TP to $100; Sees Favorable Factors Priced In

$MEITUAN-W(03690.HK)$ 's 4Q23 results surpassed expectations, with many favorable factors already reflected in its valuation, according to Morgan Stanley.

The company's commitment to significant loss reduction this year addresses investor concerns, although apprehensions remain regarding trading growth and competitive landscape.

Morgan Stanley forecasts 1Q24/2024 revenues at RMB70 billion/RMB323 billion respectively, up 20%/17% YoY, with adjusted operating profits of RMB5.5 billion/RMB33.5 billion, up 24%/81% YoY.

Rated Equalweight, Morgan Stanley lifted the target price from $85 to $100, reflecting its outlook on $MEITUAN-W(03690.HK)$ 's performance.