Brean Capital Raises Price target on NetEase (NTES) to $310 Following EPS Beat
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Brean Capital reiterated a Buy rating on NetEase.com (NASDAQ: NTES), and raised the price target to $310.00 (from $235.00), following the company's 3Q earnings report. Total net revenue for 3Q16 was RMB 9.21bn, trailing consensus expectations of RMB 9.68bn. Non-GAAP EPS for 3Q16 was RMB 22.82 ($3.42), topping consensus of $3.22 by 20 cents.
Analyst Fawne Jiang commented, "We are positive on NTES and believe the company presents a unique investment opportunity for investors with its strong focus on quality, robust growth outlook and attractive risk/reward profile. NTES’ unwavering commitment to provide quality products and experience to its users across all segments continues to enhance its platform value and offers ample room for growth down the road. In the coming quarters, we are particularly excited about new game contribution from top ranked Onmyoji, Ghost, Overwatch and WoW, while ecommerce growth should remain robust amid secular consumption upgrades in China. It is also encouraging to see that the company starts to flex its muscles with ambitions on the global markets. As such, we reiterate our Buy rating on NTES stock and raise our TP to $310. We expanded our multiples on valuation upon our increasing confidence in the company’s mid/long-term growth outlook and its continued consolidation of the market. Over the longer term, when NTES showcases its capability as a global leading game player, we see further multiple expansion opportunities through closing the gap with the global leading players."
Shares of NetEase.com closed at $251.86 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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