Barclays Maintains Hold Rating on NetEase with $120 Price Target

Barclays analyst Jiong Shao maintains a Hold rating on NetEase (NTES) with a price target of $120. The company's shares closed at $129.22. Shao has a 58.25% success rate on recommended stocks and a 14.3% average return. The current analyst consensus on NetEase is a Moderate Buy with an average price target of $143.30.

NetEase Inc. (NTES) reported its third-quarter financial results, revealing a mixed performance with net income and revenue declining year-on-year. The company's gaming business, which accounts for a significant portion of its revenue, saw a 4.2% year-on-year decrease. However, the PC games segment performed exceptionally well, with a 29% year-on-year increase in revenue and a 30% increase compared to the previous quarter [1].

Barclays analyst Jiong Shao maintains a Hold rating on NetEase, with a price target of $120. Shao's 58.25% success rate and 14.3% average return highlight his track record. The current analyst consensus on NetEase is a Moderate Buy, with an average price target of $143.30 [2].

Despite the gaming revenue decline, NetEase's PC games segment showed robust growth, driving gross profit increases. The company's "Identity V" and "Naraka: Bladepoint" games have seen stable popularity, with "Naraka: Bladepoint" climbing to fourth place on the iOS best-seller list following its seasonal update in September. "Peak Speed" also performed well after its launch in Japan in August, topping the free charts of Apple and Google app stores [1].

NetEase's CEO and director, Ding Lei, emphasized the company's focus on player needs and innovation to attract global players. The company continues to launch new games and expand its market presence, aiming to bring excellent gaming experiences to more players both domestically and internationally [1].

Analysts have varying opinions on NetEase's stock. While some maintain a Buy rating, others have downgraded their ratings due to the slower-than-expected games revenue growth. However, the games revenue outlook for the second half of 2025 remains resilient, supported by the strong performance of evergreen games and contract liabilities [2].

In conclusion, NetEase's financial performance in the third quarter shows mixed results, with strong growth in the PC games segment offsetting declines in mobile games revenue. The analyst consensus remains moderately bullish, with a focus on the company's strategic resilience and growth potential in the gaming industry.

References:
[1] https://www.moomoo.com/news/post/80444712/record-tr4cking-news-what-to-expect-in-the-week-ahead-powell-at-jackson
[2] https://www.tipranks.com/stocks/ntes/forecast