Citibank: Reiterates CAOCAO INC (02643) target price of HK$70. The acquisition can bring synergies.

Citigroup released a research report stating that CAOCAO INC (02643) hopes to establish a one-stop travel and business travel technology platform covering individual and corporate customers through the acquisition of StarRides and Geely Business. The firm maintains a "buy" rating for the company and reiterates a target price of 70 Hong Kong dollars. The firm believes that providing services to corporate clients and high-end users will help increase CAOCAO's overall ARPU and profit margin, and that these user groups may also have higher loyalty and stickiness to the platform, bringing synergies of cross-selling to the company's existing travel business as a whole.