G Sachs has a positive outlook on Meituan's food delivery business, citing improved profit recovery prospects and better-than-expected financial results for the first quarter. The firm forecasts a 5% year-over-year growth in core local commerce revenue for the second quarter and expects the food delivery segment to break even as early as the second quarter. As a result, G Sachs has raised its long-term profit forecast and maintained a Buy rating, increasing the target price from HKD112 to HKD116.
