Meituan (3690) Earnings: 4Q Revenue Surpasses Estimates with Strong Local Commerce and New Initiative Performance

Meituan on Smartkarma

Meituan, a leading Chinese e-commerce platform, has been receiving a lot of attention from analysts on Smartkarma, an independent investment research network. The latest reports from top independent analysts such as Eric Chen and Ming Lu have shown mixed sentiments towards the company.

Eric Chen, who has a bearish outlook on Meituan, believes that the company’s recent stock rally has already priced in its improving fundamentals. He suggests that investors take profits from the rally and wait for better entry points. On the other hand, Ming Lu, who has a bullish view, expects Meituan to report its fourth profitable quarter in 4Q23 and sees a potential upside of 99% in the company’s EPS.

Meanwhile, Sumeet Singh from Aequitas Research provides a weekly update on deals and upcoming IPOs, including a possible summer 2024 listing for Meituan. However, Ying Pan has recently downgraded the stock to a “sell” rating due to increased competition and challenges in the medium term, particularly from Douyin, a popular short video app in China.

Despite the mixed sentiments, Eric Chen has turned cautiously positive on Meituan, citing its solid competitive positioning in food delivery and potential for market share growth in the in-store business. He believes that the current valuation of the company already reflects a rather bearish outlook and sees value emerging for investors.

A look at Meituan Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Meituan, a popular web-based shopping platform in China, has received high scores in Growth, Resilience, and Momentum from Smartkarma’s Smart Scores. This indicates a positive long-term outlook for the company. With a score of 4 for Growth, Meituan is expected to continue expanding its offerings and reach in the Chinese market. The company’s score of 5 for Resilience means that it is well-equipped to withstand any potential challenges or disruptions. Additionally, Meituan‘s score of 3 for Momentum suggests that it has strong momentum in the market and is likely to continue its upward trajectory.

However, Meituan has received lower scores in Value and Dividend, with scores of 2 and 1 respectively. This indicates that the company may not be as financially attractive to investors looking for value or dividend returns. Despite this, Meituan‘s overall outlook remains positive, with its strong scores in Growth, Resilience, and Momentum. As a web-based platform for local consumer products and services, Meituan has established itself as a leading player in the Chinese market and is expected to continue its growth and success in the long run.

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