Citi analysts have increased their price target for NetEase (NTES) stock ahead of its Q4 2024 earnings report next month. This has the analysts bumping their price target up from $115 to $121 per share, representing a potential 8.3% upside for NTES stock. The firm’s analysts also maintained a Buy rating for the video game development and publishing company’s shares.
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The increased NTES stock price target comes alongside Q4 2024 revenue estimates of 27.3 billion yuan, a 0.6% year-over-year increase. Citi expects online game revenue to fuel this increase with a 0.4% jump year-over-year to 21 billion yuan.
The updated coverage of NetEase comes after the release of Marvel Rivals, a free-to-play hero shooter featuring characters from Disney’s (DIS) Marvel franchise. The game launched in early December with a preliminary Season 0 and Season 1 was released earlier this month. It generates revenue via sales of in-game cosmetics and battle passes that reward gamers for playing.
What to Expect from NetEase in Q4
NetEase is set to release its Q4 2024 earnings report on Feb. 20, 2025. Wall Street’s estimates for the quarter include earnings per share of $1.70 alongside revenue of $3.7 billion. Looking at its earnings history, NTES has beaten EPS estimates in five of the last eight quarters and revenue estimates in six of them.
Is NTES Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for NetEase is Strong Buy based on eight Buy and one Sell ratings over the last three months. With that comes an average price target of $111.72, a high of $125.50, and a low of $82. This represents a potential 12.5% upside for NTES shares.
