Movement Alert|NTES Rises 3.02% in Regular Trading, Multiple Brokerages Upgrade Ratings and Raise Target Prices Boosting Confidence

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Yesterday

On August 26, NTES rose 3.02% in regular trading, trading at 204.8 HKD/share, with turnover of HKD 205 million.

On the news front, multiple institutions recently issued bullish research reports on NTES. Goldman Sachs raised its target price to 263 HKD, citing the company as a quality non-AI compounder with record-high game gross margins and free cash flow. Bank of America Securities lifted its target to 272 HKD, upgrading adjusted operating profit forecasts by 7%-9% for the next three years. Guohai Securities upgraded to Buy with a 263 HKD target, noting structural improvement in operating profitability. Additionally, the Hang Seng HKEX Stock Connect China Enterprises Index review confirmed NTES inclusion effective September 14, expected to drive passive capital inflows. Overnight, NTES US shares rallied 4.58%, extending the rebound momentum following the Q2 earnings release which showed game revenue growing 10% year-over-year and game gross margin reaching a historic high of 76.1%.

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