0351 GMT - Meituan's core local commerce segment could stage an earnings turnaround in 2Q, spurred by reduced losses in the food-delivery business, DBS Group Research analysts say in a note. "The subsidy-driven competitive pressure is easing materially," as indicated by the sharp sequential narrowing in the segment's 1Q operating loss, they write. The Chinese shopping-and-delivery platform also stands to gain from improved margins as key competitors reduce subsidies and redirect resources away from food delivery. DBS raises its 2026 and 2027 earnings forecasts for the company by 4% and 6%, respectively, and lifts the target price to HK$125 from HK$119, with a buy rating. Shares fall 6.1% to HK$80.30 after Tuesday's 9.3% advance following better-than-expected results. (farah.elias@wsj.com)

(END) Dow Jones Newswires

June 02, 2026 23:51 ET (03:51 GMT)

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