01:10 AM EDT, 05/24/2024 (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:

We keep our forecasts unchanged for NetEase ( NTES ), as successive quarters should be stronger on the launch of major titles. Our 12-month target price is kept at USD130, at 18.8x 2024 earnings per ADS (five-year average: 20.5x). We think this is fair given our projected slower growth of 12% CAGR to 2025 (five-year average: 35%), offset by a turn in interest rates by end-2024. We expect its Games segment to drive revenue on new launches, e.g., Naraka: Bladepoint mobile (Q2), PC Where Winds Meet (Q3), and others (e.g., Justice regional launches, Once Human). This, along with a pickup in margin from Cloud Music as it gains scale, should drive profit growth. In Q1 2024, revenue +7%, on growth for Games (+7%), Youdao (+20%), Cloud Music (4%, accelerating subscriptions, net add at two-year high), and Innovative Businesses (+6%). Gross margin +3.9%pt to 63.4% on higher segment margins apart from Youdao (higher investment costs). Net profit +13%, as higher SG&A (+33%) and R&D (11%) are offset by a reversal in forex losses.