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The analysts argue that NTES shares will rise in absolute terms over the next 60 days.
“This is because the stock has traded off recently, making short-term valuation much more compelling. We think 1Q23 results (May 25) will be different from 4Q22 results,” they said in a client note on Wednesday.
The analysts also highlight upcoming product launches, namely “Justice mobile, Badlanders and Racing Master in June, Sanguo Blade in July, Harry Potter International in summer, as well as Eggy Party International and Where Winds Meet in 2H23 potentially.”
The NTES stock valuation is attractive at current levels with a price target of $115 per share implying an upside potential of ~37%.
“We estimate that there is about a 70% to 80% (or “very likely”) probability for the scenario,” the analysts concluded.
NetEase shares are up 15.3% year-to-date.
