Bank Rating | Nomura: The outlook for NetEase’s gaming business appears solid; maintains ADR "Buy" rating and $155 target price
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Glonghui May 25th|Nomura analysts stated in a research report that NetEase’s gaming business outlook appears very solid. The analysts at Nomura noted that, given the very high year-on-year base and a lack of major new games, the first quarter could have been quite challenging for NetEase’s gaming division. However, they pointed out that NetEase achieved a 6% revenue growth in the first quarter, surpassing market expectations. They emphasized that this “clearly reflects the extraordinary resilience and lasting popularity of games launched by NetEase over the past ten years.” Nomura also anticipates that a highly promising new game will be launched soon. This game may “attract maximum attention during the peak summer gaming season.” Nomura maintains a Buy rating on NetEase ADRs and a target price of $155.00.
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