Barclays increased NetEase’s stock price target to $530 (14.9% upside potential) from $500 and reiterated a Buy rating, saying that the company’s product pipeline continues to support its gaming revenue growth.
Barclays analyst Gregory Zhao wrote in a note to investors on Friday that NetEase’s (NTES) “solid gaming revenues growth shows the long lifecycles of the existing portfolio.” Zhao added that the “company’s rich new game pipeline should be able to support gaming revenue growth in the next couple of quarters.”
Benchmark analyst Fawne Jiang raised the stock’s price target to $520 (12.7% upside potential) from $435 and kept a Buy rating. Fawne noted that “the company reported another strong quarter with both adjusted EPS and revenue beating expectations by a wide margin.” The analyst expects “the company’s online game growth to remain solid and remains confident in NetEase’s strong game development and operations as well as its non-game product roadmap.”
On Aug. 14, NetEase reported 2Q revenues of $2.6 billion, which beat analysts’ expectations of $2.5 billion. Adjusted EPS of $5.70 surpassed Street estimates of $3.74. Online gaming services revenues jumped 20.9% to $2 billion year-over-year during the reported quarter.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 10 Buys and 1 Hold. The average price target of $501.14 implies upside potential of about 8.6% to current levels. (See NTES stock analysis on TipRanks).
Related News:
JPMorgan Lifts PT On Farfetch As 2Q Sales Beat
Truist Raises Yelp’s PT On ‘Balance Sheet Strength’
D.A. Davidson Lifts Applied Materials’ PT On ‘Solid’ 3Q Earnings
