Analyst Miranda Zhuang of Bank of America Securities reiterated a Buy rating on NetEase, with a price target of $166.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Miranda Zhuang’s rating is based on several promising aspects of NetEase’s business strategy and financial outlook. The company has a robust core game portfolio, which is expected to continue driving revenue growth, particularly with the upcoming release of Diablo 4. Additionally, the anticipated launch of the game Ananta is projected to significantly boost NetEase’s earnings, although it may take several quarters before its release. The company’s ongoing USD3 billion buyback program is also seen as a factor that could provide downside support to the stock.
Furthermore, NetEase’s management has demonstrated a strong commitment to shareholder returns and strategic marketing spending, which remains consistent with historical levels. The company’s previous overseas investments have bolstered confidence in its ability to compete globally, particularly in launching online games for a worldwide audience. Zhuang’s price objective of USD166 is supported by a valuation based on a 15x PE multiple applied to 2026 earnings per share, alongside the consideration of NetEase’s investment and cash holdings. Potential risks include weaker-than-expected new game launches and user fatigue with existing games.
Zhuang covers the Communication Services sector, focusing on stocks such as Baidu, NetEase, and AutoHome. According to TipRanks, Zhuang has an average return of -6.1% and a 35.59% success rate on recommended stocks.
In another report released on November 21, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $151.00 price target.