Seasonal Events, Content Updates to Support NetEase's Games Momentum
Dow Jones
Aug 21
0631 GMT - Seasonal events and content updates should support NetEase's games momentum, Daiwa analyst John Choi says in a note. Industry watcher Sensor Tower's grossing data has shown a year-over-year growth uptick since June, reflecting solid momentum from evergreen titles such as "Fantasy Westward Journey" and "Eggy Party," he says. This solid momentum should sustain into 3Q, says the analyst, who expects 3Q online games revenue to grow 9% from a year earlier to 24.9 billion yuan. As games gross margin hit 76.1% in 2Q, the bank sees limited room for increases going forward. Daiwa raises NetEase's target price to 260.00 Hong Kong dollars from HK$257.00. Shares are last at HK$199.90.
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