U.S. stock anomaly | Netease continues to rise more than 1% pre-market, Citigroup raises its target price to $115.
November 18th, Netease (NTES.US) continued to rise by 1.12% in pre-market trading to $86.45, following a 12% increase over the previous 2 days since the announcement of Q3 results. Citigroup released a report stating that Netease's third-quarter revenue and net profit were below expectations, but they continue to demonstrate the ability to develop and launch high-quality games. The firm raised the target price for Netease ADR from $108 to $115, maintaining a "buy" rating based on attractive valuation, strong cash flow, and ongoing shareholder returns. (Gelonghui)
HTSC raises netease (09999.HK) target price to 118.15 yuan, with third quarter game revenue exceeding expectations.
HTSC's report stated that Netease (09999.HK) saw a 3.9% year-on-year decrease in third-quarter revenue to 26.2 billion RMB, lower than the market's consensus of 1.3%. Adjusted net profit declined by 13.3% year-on-year, below the consensus of 4.7%, mainly due to expanding exchange rate losses. Standalone gaming and deferred revenue exceeded expectations by 21% and 14% respectively, primarily driven by the return of the "Warcraft" gaming and the continued growth of revenue from "Revelation." The bank believes that the return of Blizzard games, the future launch of "Swallow Clouds" and "Code: Endless" will contribute significant revenue growth, thus raising the forecast of Netease's gaming revenue for the years 2024 to 2026.
BOCI Research: Netease (09999.HK) is supported by strong PC gaming in the short term, with the target price raised to 165 yuan.
Bank of China International's report stated that Netease (09999.HK) had mixed performance in the third quarter, with strong support from PC gaming boosting short-term gaming business, and the target price raised from 151 yuan to 165 yuan. The company's continued stable execution of buybacks and quarterly dividend policies maintain a "buy" rating. The report indicated that Netease's 4% decline in total revenue in the third quarter was lower than the market's expected 1%. The market was surprised by the 10% year-on-year decrease in mobile gaming revenue, the 29% year-on-year growth in client-side gaming revenue, and the 2% year-on-year growth in cash receipts. The operating profit margin of 27.3% was slightly lower than market expectations. Bank of China International predicts that due to over
Research Reports | China Merchants: Lowered Netease's target price to HK$181, expecting game revenue to rebound with the launch of "Yan Yun Sixteen Sounds".
On November 18th, Guolonghui reported that China Merchants Securities pointed out in a report that Netease's third-quarter revenue declined by 4% year-on-year to 26.2 billion yuan. Game business revenue decreased by 1% year-on-year (increased by 12% year-on-year in the second quarter), with mobile game revenue declining by 10% year-on-year, while PC game revenue increased by 29% year-on-year, benefiting from better-than-expected Blizzard products and the driving force of the PC game "The Endless Mission". As for shareholder feedback, Netease management emphasized that shareholder returns over the past five years accounted for 78% of net income. Netease repurchased $0.5 billion in the third quarter, with a remaining repurchase quota of $3.4 billion (total repurchase plan amounting to $5 billion), equivalent to approximately 6 times the current market cap.
Nomura Adjusts NetEase's Price Target to HK$159 From HK$157, Keeps at Buy
Express News | CICC: Maintains a "outperform industry" rating on Netease, with overall third-quarter performance exceeding expectations.