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<Research>Nomura Cuts MEITUAN-W's TP to HKD123; Dominance in Food Delivery Platforms Recedes
Recommend 48 Positive 85 Negative 52 |
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BABA-W (09988.HK) (BABA.US) revealed in its earnings call that it plans to slash losses per order by 50% within the next two months, suggesting that its competition with MEITUAN-W (03690.HK) may peak out in 3Q25, Nomura wrote in its report. In Nomura's opinion, MEITUAN-W remains the largest food delivery platform in China, but likely with weakened dominance. Meanwhile, the broker believes that it is still too soon to declare BABA-W the winner of the competition despite the rapid growth of its food delivery order share. In fact, nearly 30% of BABA-W's orders came from beverages, which were susceptible to subsidies. It is unknown whether BABA-W can retain this demand as its subsidies fade out. Nomura kept a Buy rating on MEITUAN-W but lowered its target price from HKD176 to HKD123. AAStocks Financial News |
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