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7 Analysts Have This To Say About NetEase

Author: Benzinga Insights | July 05, 2024 08:00am

Across the recent three months, 7 analysts have shared their insights on NetEase (NASDAQ:NTES), expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 1 4 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 2 0 0
2M Ago 1 0 1 0 0
3M Ago 1 1 0 0 0

Analysts have set 12-month price targets for NetEase, revealing an average target of $113.57, a high estimate of $145.00, and a low estimate of $100.00. This current average has decreased by 6.53% from the previous average price target of $121.50.

price target chart

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive NetEase. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Alex Poon Morgan Stanley Maintains Equal-Weight $100.00 $100.00
Alex Poon Morgan Stanley Maintains Equal-Weight $100.00 $100.00
Jiong Shao Barclays Announces Equal-Weight $104.00 -
Fawne Jiang Benchmark Raises Buy $145.00 $144.00
Alex Poon Morgan Stanley Lowers Equal-Weight $100.00 $120.00
Ritchie Sun HSBC Lowers Buy $126.00 $130.00
Alex Poon Morgan Stanley Lowers Overweight $120.00 $135.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to NetEase. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of NetEase compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for NetEase's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of NetEase's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on NetEase analyst ratings.

Delving into NetEase's Background

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).

Unraveling the Financial Story of NetEase

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: NetEase's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 7.21%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: NetEase's net margin is impressive, surpassing industry averages. With a net margin of 28.43%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): NetEase's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.07%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): NetEase's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.01% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: NetEase's debt-to-equity ratio is below the industry average. With a ratio of 0.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: NTES