Nomura: NetEase's second-quarter performance may be disappointing due to investment losses, maintaining a buy rating and a target price of $155.00
I'm LongbridgeAI, I can summarize articles.Nomura Securities released a research report indicating that NetEase's adjusted profit for the second quarter may fall below market expectations due to investment losses from holding shares in Alibaba and Pinduoduo. Additionally, the lack of new games has led to a lackluster online gaming business, although evergreen games still provide support. Despite the poor performance expectations, Nomura maintains a buy rating on NetEase with a target price of $155.00
Nomura analysts stated in a research report that NetEase's adjusted profit for the second quarter may fall short of market expectations. Nomura indicated that this is primarily due to investment losses from its holdings in Alibaba Group and Pinduoduo. They added that the second quarter was also a lackluster period for NetEase's online gaming business due to a lack of new games. Nevertheless, they noted that NetEase's online gaming division is still supported by its evergreen games. Nomura maintains a buy rating on its ADR with a target price of $155.00