A Glimpse Into The Expert Outlook On NetEase Through 4 Analysts
In the last three months, 4 analysts have published ratings on NetEase (NASDAQ:NTES), offering a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for NetEase, presenting an average target of $118.0, a high estimate of $135.00, and a low estimate of $104.00. This upward trend is evident, with the current average reflecting a 14.84% increase from the previous average price target of $102.75.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of NetEase among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Daniel Chen | JP Morgan | Raises | Overweight | $135.00 | $120.00 |
| Jiong Shao | Barclays | Raises | Equal-Weight | $118.00 | $104.00 |
| Jiong Shao | Barclays | Raises | Equal-Weight | $104.00 | $82.00 |
| Fawne Jiang | Benchmark | Raises | Buy | $115.00 | $105.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to NetEase. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of NetEase compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for NetEase's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of NetEase's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on NetEase analyst ratings.
Discovering NetEase: A Closer Look
Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online game company gaming in China. While its initial success was built upon the massively multiplayer online role-playing game Fantasy Westward Journey, NetEase has expanded its portfolio with captivating franchises that resonate with both domestic and international players. Over the past decade, the company has created titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which maintain significant player bases today. Beyond in-house development, the company also collaborates with likes of Microsoft and Marvel to create and publish games based on renowned IPs, including World of Warcraft, Diablo Immortal, and Marvel Rivals.
NetEase's Financial Performance
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: NetEase's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 7.36%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 35.73%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): NetEase's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 7.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.19%, the company showcases effective utilization of assets.
Debt Management: NetEase's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.
What Are Analyst Ratings?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Breaking: Wall Street's Next Big Mover
Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.
This article was generated by Benzinga's automated content engine and reviewed by an editor.