China's Meituan jumps most in 8 weeks after results, brokers up price target

Meituan

02/06/2026 03:36

** Shares of Chinese food delivery leader Meituan 3690.HK jump 7.2% to HK$83.90, on track for the biggest one-day pct rise since April 8
** Stock hit the highest level since May 21 in the third consecutive session of gains
** Top pct gainer in benchmark Hang Seng Index .HSI and Hang Seng TECH Index .HSTECH, which are up 0.8% and 2.1%, respectively
** Meituan on Monday posted a third consecutive quarterly loss and met revenue growth estimates as a year of bruising, subsidy-fuelled competition in China's one-hour delivery space showed signs of easing
** Revenue for the quarter ended March 31 up 5.6% y/y at 91 bln yuan ($13.45 bln) with adjusted net loss narrowing to 4.97 bln yuan from a 15.1 bln yuan loss in the fourth quarter
** Citi keeps "Buy" rating and lifts target price to HK$113 from HK$110, believing the worst of the competitive intensity is over, allowing Meituan to focus on driving AI adoption and product enhancement 
** Jefferies maintains "Buy" and raises price target to HK$132 from HK$130  
** YTD, stock down 18.4%, while Hang Seng Index .HSI up 0.2%
     
     

(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))