The analyst rating for MEITUAN-W (03690.HK) is Overweight, with a target price of HKD120. The reasoning behind this rating is based on the profit warning issued for FY25, which was in line with market expectations, indicating a net profit loss of around RMB23 billion. Although the anticipated core local business operating loss was slightly better than expected, the company is facing increased competition, particularly from Alibaba, which has led to higher investment costs. Despite these challenges, the overall outlook remains positive enough for Morgan Stanley to maintain an Overweight rating, suggesting confidence in the company's long-term potential despite short-term struggles.
