5 Analysts Assess NetEase: What You Need To Know

In the last three months, 5 analysts have published ratings on NetEase NTES, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $119.0, a high estimate of $145.00, and a low estimate of $100.00. Experiencing a 10.02% decline, the current average is now lower than the previous average price target of $132.25.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of NetEase among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to NetEase. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of NetEase compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of NetEase's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of NetEase's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on NetEase analyst ratings.

Discovering NetEase: A Closer Look

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).

Understanding the Numbers: NetEase's Finances

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining NetEase's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.21% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: NetEase's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 28.43%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.07%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): NetEase's ROA stands out, surpassing industry averages. With an impressive ROA of 4.01%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.2.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.