Citigroup: Raised Meituan's Hong Kong Stock Target Price to 126.3 Hong Kong Dollars, Maintained "Buy" Rating.

Citibank released a report stating that it has adjusted its forecast for Meide Group to reflect its latest guidance. The bank expects the group's revenue and net profit to increase by 6% year-on-year in 2026, and anticipates that the shareholder cash return in 2026, including dividends and share buybacks, will reach 100% of net profit, same as in 2025, due to the company having no major acquisition plans from 2026 to 2028. The bank's net profit forecast for Meide in 2026/2027 remains basically unchanged, and the valuation benchmark is switched from the 2025 price-earnings ratio to the 2026 price-earnings ratio. Based on a target price-earnings ratio of 19 times for 2026, the target price for the Hong Kong-listed stock has been raised from 119.3 Hong Kong dollars to 126.3 Hong Kong dollars, and the bank maintains a "buy" rating.