NetEase’s Strategic Game Expansion and Market Position Justify Buy Rating

Morgan Stanley analyst Yang Liu CFA maintained a Buy rating on NetEase (NTES – Research Report) today and set a price target of $138.00.

Yang Liu CFA has given his Buy rating due to a combination of factors that highlight NetEase’s strong position in the gaming industry. The recent game conference held by NetEase showcased a diverse lineup of new titles, indicating a strategic balance between PC/console and mobile platforms. This approach not only caters to a broader audience but also taps into the growing popularity of the shooter genre, which could drive significant user engagement and revenue growth.
Furthermore, the updates on existing games, such as the introduction of popular characters like Ultron in Marvel Rivals, are expected to boost gross earnings. The promising pipeline of games and the positive early testing results provide confidence in NetEase’s long-term outlook, particularly for the years 2026 and 2027. These strategic developments, coupled with a favorable market position, underpin Yang Liu’s optimistic Buy rating for NetEase’s stock.

According to TipRanks, Liu CFA is a 5-star analyst with an average return of 31.1% and a 59.46% success rate. Liu CFA covers the Technology sector, focusing on stocks such as GDS Holdings, Kingdee International Software Group Co, and Tuya.

In another report released on May 18, J.P. Morgan also maintained a Buy rating on the stock with a $135.00 price target.