Miranda Zhuang, an analyst from Bank of America Securities, maintained the Buy rating on NetEase. The associated price target is $166.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Miranda Zhuang’s rating is based on several key factors that highlight NetEase’s potential for growth and stability. Despite a slight miss on revenue expectations, NetEase’s net profit remained consistent, showing resilience in its financial performance. The strong performance of FWJ PC in the third quarter was a positive indicator, aligning with investor expectations and contributing to the Buy rating.
Additionally, the online games and value-added services segment showed a healthy revenue growth, driven by key titles and a recovery in certain games. Although there were some declines in other segments like Cloud Music and innovative businesses, the overall profitability remained solid with a group gross profit margin of 64.1%. The extension of the share buyback program further indicates confidence in the company’s future prospects, supporting the Buy recommendation.
In another report released today, China Galaxy International also maintained a Buy rating on the stock with a $166.00 price target.