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Research Alert: CFRA Keeps Hold Opinion On Adss Of Netease, Inc.
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Research Alert: CFRA Keeps Hold Opinion On Adss Of Netease, Inc.
Nov 21, 2025 4:28 AM

07:05 AM EST, 11/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of USD148 (from USD145 to reflect FX movements)18.1x our 2026 EPADS (five-year mean: 17.5x). We think this premium is justified given NetEase's ( NTES ) consistent earnings delivery, strong net cash position, and growing monetization across both new and legacy gaming titles. We forecast NetEase's ( NTES ) revenue to grow 8%/7% in 2025/2026, underpinned by sustained strength in its Games and Value-Added Services. We expect growth to be supported primarily by full-year contributions from successful titles (such as Marvel Rivals, Where Winds Meet, and Fantasy Westward Journey), new launches (such as FragPunk and Dunk City Dynasty), and Blizzard's relaunched franchises (including Hearthstone and World of Warcraft). We project operating margin to see progressive growth. While licensing fees from global titles will weigh on gross margin, we believe the impact will be offset by reduced marketing intensity and R&D efficiency gains. We lift our 2025 EPADS forecast to CNY53.72 (from CNY53.00) and keep 2026's at CNY58.00.

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