State officials from seven Chinese government departments performed an on-site visit today
State officials from seven Chinese government departments conducted an on-site visit of ride-hailing name DiDi Global Inc (NYSE:DIDI) today, with the objective of performing a cybersecurity review of the company. The visit came as regulatory pressures intensify, with China calling on its tech industry to implement stricter measures to securely store user data. The investigation also ordered the company to remove its apps from China, and happened just two days after DiDi Global raised $4.4 billion from its U.S. initial public offering (IPO).
In response, DIDI was last seen down 3.4% to trade at $11.94. Though the security has only been trading for a couple of weeks, it has finished higher just four times, and is now pacing for its second-straight week of losses. Quarter-to-date, DiDi Global stock has lost 15.7%.
Analyst attention is still scarce, but the one brokerage firm covering DIDI calls it a "buy." Plus, the 12-month consensus price target of $25 is a staggering 110.3% premium to current levels.