Citigroup upgrades Meituan's rating to Buy, expecting further improvement in the unit economics of its delivery business.

GateUser-bd883c58 · 2026-03-27T19:10:58+00:00

Citigroup upgrades Meituan's rating to Buy and forecasts an improvement in the economic benefits of the delivery business. It is expected that Meituan's core local commerce will return to profitability by Q3 2026, with the loss reduction possibly brought forward to Q2 2026, supporting the stock price.

GateUser-bd883c58

2026-03-27 19:10:58

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Ask AI · Will the core local business profit recovery be achieved ahead of schedule?

[Citi upgrades Meituan rating to Buy; expects further improvement in delivery business unit economics] Caixin Media, March 27, reported that Citi has upgraded the rating of Meituan’s Hong Kong-listed shares to Buy and raised its target price from HK$94 to HK$110, citing the company’s strategic focus on higher average order values and high-quality users. The report noted that Meituan’s delivery business unit economics (UE) saw a significant quarter-on-quarter improvement in the fourth quarter of last year and is expected to improve further in the first quarter of 2026. Analysts, including Alicia Yap, stated that Meituan’s execution in overseas markets is solid, and that the unit economics in the Saudi Arabia market are expected to turn positive by the end of 2026. It is anticipated that the core local business will return to profitability in the third quarter of 2026, but the reduction of losses could also come earlier, in the second quarter of 2026, providing strong support for the stock price performance.

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