Citibank: First to Meitu (01357), the target price for the “buy” rating is HK$7

The Zhitong Finance App learned that Citi released a research report stating that it will launch coverage of Meitu (01357) with a “buy/high risk” rating, with a target price of HK$7. The bank believes that the market underestimated Meitu's potential for AI-driven growth as an early actor in the transformation of products and monetization models. Citi also believes that Meitu's commitment to improving shareholder returns and that the chairman's continuous increase in holdings can also support stock prices.

According to the bank, Meitu is using AI to infiltrate visual workflows and evolve from a subscription model to a monetization model based on AI consumption to increase the value and ARPU per user. Meitu also has high spending power and a beauty-oriented user base that supports profits, yet LLM still has difficulties with the controllability and consistency required for high-quality face editing. Continued strong growth in overseas business should drive higher ARPU.