NetEase.com's 3Q Expected To Be Conservative

Auriga has published a research report on NetEase.com, Inc. NTES in anticipation of the company's 3Q results, expected to be reported on 11/17. In the report, Auriga writes "NetEase.com (NTES, Buy) will report 3Q10 results on Wednesday, Nov. 17th after the market close followed by an 8pm ET conference call. We believe consensus 3Q10 estimates could be conservative, as the Street may have been too focused on the weaker-than-expected performance of Wrath of the Lich King (WLK) and not enough on stronger-than-expected in-house games. As such, we expect 3Q revenue above consensus at 5% Q/Q growth, driven by the strong performance of in-house games such as Fantasy Westward Journey (FWWJ), as well as the advertising business." Auriga maintains its Buy rating and $44 price target. NetEase.com closed yesterday at $40.59.