Deutsche Bank Upgrades NetEase.com (NTES) to Buy on Strong Q4
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Price: $62.91 +5.87%
Rating Summary:
11 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Rating Summary:
11 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Trade NTES Now!
Deutsche Bank upgraded NetEase.com (NASDAQ: NTES) from Hold to Buy with a price target of $58.00 (from $51.00) following strong Q4 results.
The firm comments, "We attribute the 4Q earnings surprise (EPS beat our estimate by 18% and Bloomberg consensus by 14%) to relatively new games, which is recurring in nature, rather than World of Warcraft's expansion pack launch, which is more one-off. We expect the 4Q momentum to continue over the next few quarters, which should also improve margins as gaming revenue shifts to in-house developed games. Further, NetEase's valuation premium vs. peers is likely to widen as the company continues to prove its game development capabilities."
The firm raised 2013 revenue forecast by 8% and EPS by 18% on solid gaming momentum and margin improvement. The firm's 2013 EPS is 7% higher than consensus.
For an analyst ratings summary and ratings history on NetEase.com click here. For more ratings news on NetEase.com click here.
Shares of NetEase.com closed at $48.75 yesterday, with a 52 week range of $37.00-$65.54.
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The firm comments, "We attribute the 4Q earnings surprise (EPS beat our estimate by 18% and Bloomberg consensus by 14%) to relatively new games, which is recurring in nature, rather than World of Warcraft's expansion pack launch, which is more one-off. We expect the 4Q momentum to continue over the next few quarters, which should also improve margins as gaming revenue shifts to in-house developed games. Further, NetEase's valuation premium vs. peers is likely to widen as the company continues to prove its game development capabilities."
The firm raised 2013 revenue forecast by 8% and EPS by 18% on solid gaming momentum and margin improvement. The firm's 2013 EPS is 7% higher than consensus.
For an analyst ratings summary and ratings history on NetEase.com click here. For more ratings news on NetEase.com click here.
Shares of NetEase.com closed at $48.75 yesterday, with a 52 week range of $37.00-$65.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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