NetEase price target lowered to $112 from $116 at Citi

Citi lowered the firm’s price target on NetEase to $112 from $116 and keeps a Buy rating on the shares. Following the softer than anticipated launch of Naraka Bladepoint Mobile and concerns on adjustment impact from FWJ PC, it is not a surprise NetEase’s Q2 print came slightly below consensus expectations, the analyst tells investors in a research note. However, the firm views the 12% decline in the share price as an overreaction, believing the company’s overall gaming portfolio performance remains intact with “rich titles” in the upcoming launch pipeline.