UPDATE: Morgan Stanley Downgrades Dingdong Cayman Limited (DDL) to Underweight

Morgan Stanley analyst Eddy Wang downgraded Dingdong Cayman Limited (NYSE: DDL) from Equalweight to Underweight with a price target of $4.20 (from $10.00).

The analyst comments "Our top-line estimates for 2022-24e are unchanged, while cutting our non-GAAP net income estimates from a Rmb675mn net loss in 2023e and Rmb513mn net profit in 2024e, to a net loss of Rmb1.2bn in 2023 and Rmb263bn in 2024, implying non-GAAP net margins of -10.5%, -4.4%, and -0.8% in 2022, 2023, and 2024. That said, we expect Dingdong's profitability timeline to be pushed out to 2025e from 2024e, due mainly to the tough macro environment and intense competition within the online fresh grocery market."

For an analyst ratings summary and ratings history on Dingdong Cayman Limited click here. For more ratings news on Dingdong Cayman Limited click here.

Shares of Dingdong Cayman Limited closed at $3.74 yesterday.

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