Citi raises Meituan's rating to buy, expecting further improvement in the economic efficiency of its takeout business unit.

Citigroup has raised its rating on Meituan's Hong Kong stocks to buy, and has raised its target price from 94 Hong Kong dollars to 110 Hong Kong dollars, citing the strategic focus on high unit prices and high-quality users. The unit economic efficiency of the company's takeaway business achieved a significant improvement quarter-on-quarter in the fourth quarter of last year, and is expected to further improve in the first quarter of 2026. Analysts Alicia Yap and others stated in the report that Meituan's execution in overseas markets is strong, and the unit economic efficiency in the Saudi Arabian market is expected to turn positive by the end of 2026. It is expected that the core local business will return to profitability in the third quarter of 2026, but the reduction in losses may also come earlier in the second quarter of 2026, providing strong support for the stock price performance.