NetEase (NTES) Stock: $120 Price Target And Overweight Rating

May 16th, 2022 17:51 EST

  • The shares of NetEase (NASDAQ: NTES) have received a $120 price target from JPMorgan. These are the details.

The shares of NetEase (NASDAQ: NTES) have received a $120 price target from JPMorgan. And JPMorgan analyst Alex Yao upgraded NetEase from an “Underweight” rating to an “Overweight” rating while increasing the price target from $60.

Yao expects the Chinese Internet sector share price drivers to migrate from sentiment in the near term to fundamentals in the medium and long term. 

“NetEase’s share price is +38% since the lowest level on Mar 14 2022, vs KWEB +23% during the same period, mainly due to better sentiment on internet regulation and positive development in ADR de-list risk. We believe the recent resumption of game license approval should support NetEase’s share price performance in the next 6-12M given: 1) a higher probability for NetEase to commercially launch new games in China that haven’t acquired license approval yet, such as Naraka: Bladepoint Mobile, and new RPG game based on Onmyoji IP, and 2) game license approval resumption is a sentiment clearing event that should be a catalyst for a gaming sector valuation re-rating,” wrote Yao in a research note. “Key potential share price catalysts in the next 6M include 1) NetEase’s Annual Game Conference on May 20, 2022, when it will provide more color on key game pipelines globally, and 2) launch of Diablo: Immortal in 2Q/3Q22. We maintain our positive view on NetEase long-term growth outlook in the China and international game markets.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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