--- title: "BofAS Raises NTES TP to HKD272; Positive Outlook on Strong Game Portfolio" type: "News" locale: "en" url: "https://longbridge.com/en/news/296567316.md" description: "BofA Securities raised NetEase's (NTES) target price to HKD272 and maintained a Buy rating, citing strong Q2 results with adjusted operating profit up 29% YoY. The broker highlighted positive outlooks driven by robust gaming margins, limited competition from ByteDance, attractive valuation, and solid shareholder returns. Forecasts for 2026-28 were increased by 7-9%, reflecting higher expected gaming gross margins." datetime: "2026-08-21T04:26:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296567316.md) - [en](https://longbridge.com/en/news/296567316.md) - [zh-HK](https://longbridge.com/zh-HK/news/296567316.md) generator: "portal-rs" --- # BofAS Raises NTES TP to HKD272; Positive Outlook on Strong Game Portfolio BofA Securities issued a report on NTES (09999.HK) +4.300 (+2.223%) Short selling $570.46M; Ratio 38.660% , which reported strong 2Q results on August 20. Total revenue added 10% YoY, 3% above market expectations. Although reported earnings were distorted by 1) non-cash investment/ FX losses (arising from investments in PDD Holdings Inc. (PDD.US) and Alibaba Group Holding Limited (BABA.US) ), 2) impairment losses and 3) RMB appreciation, adjusted operating profit increased 29% YoY, 13% above market expectations, thanks to strong gaming gross margins and marketing cost efficiency. The broker continued to expect accelerated growth in both revenue and earnings in 2H. Overall, the broker remained positive on NTES due to: 1) limited competitive risk from ByteDance; 2) potential upward revisions to future earnings forecasts; 3) attractive valuation; and 4) solid shareholder return records and continued support from southbound funds. The broker raised its 2026-28 adjusted operating profit forecasts by 7-9% to reflect higher gaming gross margins. It reiterated a Buy rating and lifted the TP from HKD268 to HKD272. The US share TP for NetEase, Inc. (NTES.US) was also raised from USD172 to USD174. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.) ### Related Stocks - [NTES.US](https://longbridge.com/en/quote/NTES.US.md) - [09999.HK](https://longbridge.com/en/quote/09999.HK.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [PDD.US](https://longbridge.com/en/quote/PDD.US.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) ## Related News & Research - [Jefferies Cites NTES as Confident in Long-term Operation of 'Naraka: Bladepoint'; Rating Maintained at 'Buy'](https://longbridge.com/en/news/296564393.md) - [China's NetEase Q2 revenue rises 7.9% on game growth](https://longbridge.com/en/news/296462242.md) - [Full Transcript: NetEase Q2 2026 Earnings Call](https://longbridge.com/en/news/296498824.md) - [Monarch Game Studios Launches Investment Round to Connect Video Games Into a Live Rewards Network](https://longbridge.com/en/news/296506888.md) - [NetEase declares USD 0.096 per share Q2 dividend](https://longbridge.com/en/news/296461799.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**