Nomura: Meituan's losses in the food delivery business are expected to narrow.

Nomura analysts stated in a research report that the recent losses in Meituan's food delivery business may narrow, but the road to recovery could be rough. The operating losses of this business segment in the first quarter may decrease compared to the previous quarter. However, the pressure still exists as Nomura analysts predict that Alibaba's subsidies for food delivery will remain high. These analysts believe that this will slow down the recovery of Meituan's food delivery business. Nomura has lowered Meituan's target price from 107.00 Hong Kong dollars to 92.00 Hong Kong dollars.