Meituan (3690) Earnings: Q2 Revenue Surpasses Estimates with Strong Adjusted EBITDA Performance

Meituan on Smartkarma

Meituan‘s performance and strategic moves have caught the attention of top independent analysts on Smartkarma. Analyst Andy Fu highlighted the surge in delivery orders for street drinks benefiting Meituan, with a historical high order volume reached on August 7. Despite the boost in volume, concerns around margin and ownership were raised. Meanwhile, analyst Ying Pan emphasized Meituan‘s strong Q2 performance driven by resilient catering demand and improved profitability, leading to a BUY rating with a raised target price. The positive sentiment was echoed by Leonard Law, CFA, in Lucror Analytics Morning Views on Meituan.

Further, Meituan‘s Q1 success in beating revenue and net income estimates was noted by analyst Ming Lu, although uncertainties around competition and overseas expansion linger. Despite the challenges, a BUY rating was maintained based on the belief that the company is navigating uncertainties through strategic execution. Overall, the analyst coverage on Meituan showcases a mix of optimism surrounding its performance and growth prospects in the competitive market landscape.

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 web-based shopping platform in China, is showing strong potential for long-term growth based on its Smartkarma Smart Scores. With top scores in Growth, Resilience, and Momentum, the company is positioned well for future success. Meituan‘s focus on expanding its services and maintaining strong performance in the market indicates a positive outlook ahead.

Although Meituan scores lower on factors such as Value and Dividend, its high ratings in Growth, Resilience, and Momentum suggest that the company’s innovative approach and adaptability to changing market conditions are key strengths that can drive its long-term success in the competitive Chinese consumer products and retail services sector.

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