Nomura Securities Upgrades NetEase.com (NTES) to Buy

Nomura Securities upgraded NetEase.com (NASDAQ: NTES) from Neutral to Buy with a price target of $194.00 (from $174.00).

Analyst Jialong Shi commented, "We upgrade NetEase (NTES) to BUY from Neutral, with a higher TP of US$194 (previous US$174) based on 17x FY16 PE. We used to be concerned that NTES lacks a blockbuster title in its pipeline to meet the Street’s then high expectations. As the stock has corrected 20% ytd, the risk-reward looks attractive now to us, trading at 12x FY16 PE. NTES shares usually outperformed their internet peers in the past bear market, backed by the company’s defensive gaming business and regular quarterly dividend, underpinned by a high FCF margin of ~30%. NTES is one of the biggest (by weighting) member stocks among Chinese ADRs in MSCI China index. However, it is still widely under-owned, based on our recent roadshow. "

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 $145.17 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading
• Canfor Pulp Products (CFX:CN) (CFPUF) PT Raised to Cdn$2.75 at Raymond James