NetEase downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Daniel Chen downgraded NetEase (NTES) to Neutral from Overweight with a price target of $140, up from $135. The firm sees a less attractive risk/reward following the stock’s rally year-to-date. NetEase has limited drivers for upward earnings revisions as promotions for new games drive expenses higher over the two years, the analyst tells investors in a research note. JPMorgan also sees a lack of blockbuster game launches in the second half of 2025 to drive game revenue upside.