In a report released yesterday, Yang Liu CFA from Morgan Stanley maintained a Buy rating on NetEase (NTES – Research Report), with a price target of $117.00.
Yang Liu CFA has given his Buy rating due to a combination of factors influencing NetEase’s market position and potential growth. The relaunch of the significant title, Condor Heroes 2.0, is a strategic move to revitalize a previously underperforming game, which had a substantial investment in research and development. The enhancements in character models, martial arts skills, and gameplay are expected to attract a large number of gamers, as evidenced by the 1.4 million appointments made by players eager to join the revamped experience.
Despite the initial failure of the game’s first version, the decision to refund all previous grossing to players demonstrates NetEase’s commitment to customer satisfaction and long-term brand loyalty. This relaunch is not factored into the 2025 financial forecast, suggesting that any positive impact from the game’s success would be considered an additional benefit. These strategic actions, coupled with the company’s market position, support the Buy rating as they indicate potential for future growth and increased market share.
In another report released on February 21, Benchmark Co. also maintained a Buy rating on the stock with a $115.00 price target.