The analyst rating from Citi on MEITUAN-W (03690.HK) is maintained at Neutral due to several factors. Although the company issued a profit warning forecasting a core local commerce operating loss that was better than both the broker's and market expectations, it still recorded a higher IFRS net loss than anticipated. Additionally, Citi highlighted potential challenges for MEITUAN-W, including increased competition from BABA-W in food delivery and instant retail, as well as competition from Douyin in the in-store business. As a result, Citi has lowered its target price from HKD115 to HKD94, reflecting concerns about the company's ability to navigate these competitive pressures before a turnaround can occur.
