Analyst Saiyi He of CMB International Securities maintained a Buy rating on NetEase (NTES – Research Report), with a price target of $125.50.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Saiyi He has given his Buy rating due to a combination of factors influencing NetEase’s performance. One key factor is the company’s solid performance in the gaming sector, particularly PC games, which showed significant growth. The return of Blizzard titles in China and the success of new games like Marvel Rivals and Where Winds Meet have contributed to this positive momentum. The expected release of several highly-anticipated titles in FY25 is likely to further diversify and strengthen NetEase’s gaming portfolio.
Additionally, NetEase’s operational efficiency has been bolstered by effective cost control measures. The notable reduction in selling and marketing expenses has led to an improvement in operating margins, which is expected to sustain in the coming fiscal year. Despite a slight decrease in total revenue forecasts for FY25-26, the non-GAAP net income forecasts have been revised upwards, reflecting confidence in the company’s strategic focus on operational prudence. These elements collectively support the maintained target price and Buy rating for NetEase’s stock.
In another report released on February 21, Bank of America Securities also reiterated a Buy rating on the stock with a $122.00 price target.
NTES’s price has also changed moderately for the past six months – from $92.590 to $103.220, which is a 11.48% increase.