Expert Outlook: NetEase Through The Eyes Of 5 Analysts

5 analysts have shared their evaluations of NetEase NTES during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for NetEase, presenting an average target of $105.4, a high estimate of $120.00, and a low estimate of $100.00. This current average has decreased by 9.91% from the previous average price target of $117.00.

Diving into Analyst Ratings: An In-Depth Exploration

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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to NetEase. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of NetEase compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of NetEase's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of NetEase's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on NetEase analyst ratings.

Get to Know NetEase Better

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).

NetEase: Delving into Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: NetEase's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 28.43% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): NetEase's ROE stands out, surpassing industry averages. With an impressive ROE of 6.07%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): NetEase's ROA excels beyond industry benchmarks, reaching 4.01%. This signifies efficient management of assets and strong financial health.

Debt Management: NetEase's debt-to-equity ratio is below the industry average at 0.2, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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