Movement Alert|NetEase Rises 7.65% in Regular Trading, Multiple Investment Banks Raise Target Prices Post-Q2 Earnings Driving Strong Rebound

Market Focus
08/21

On August 21, NetEase rose 7.65% in regular trading, trading at $127.7/share, with turnover of $29.21 million, marking a strong recovery from the prior session's 5%+ decline triggered by below-expectation EPS.

On the news front, following NetEase's Q2 earnings release, Goldman Sachs, Bank of America Securities, Citi, Daiwa, Jefferies, and Bernstein collectively raised target prices while maintaining \"Buy\" ratings. Goldman Sachs highlighted NetEase as a quality \"non-AI\" compound enterprise, noting record-high game gross margins and free cash flow, with margin expansion deemed structural. Bank of America raised its target price to HK$272 and lifted adjusted operating profit forecasts by 7%-9%. Bernstein raised its target from $150 to $160.

Fundamentally, NetEase Q2 revenue reached RMB 30.1 billion, up 7.9% YoY and beating consensus of RMB 29.45 billion. Game revenue hit RMB 25 billion, up 10% YoY, while operating profit surged 33% to RMB 12.1 billion. Net profit declined 18.6% due to approximately RMB 3 billion in investment losses, which had pressured the stock in the prior session.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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