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Research Alert: CFRA Maintains Hold Recommendation On Adss Of Netease Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our target price at USD128, implying 14x our 2026 EPADS forecast. We think the premium valuation fairly reflects improving earnings visibility, cost discipline, and expanding global game monetization, though execution must remain strong to justify current multiples. We lift our EPADS forecasts to CNY62 (from CNY58) for 2026 and to CNY68.50 (from CNY63.50) for 2027. Management expressed confidence in its established gaming portfolio and highlighted progress in its pipeline and international expansion. We see a strong gaming portfolio ahead, with contributions from relisted Blizzard titles expected to support MAU and ARPPU growth, while continued traction from Where Winds Meet and Sword of Justice should provide further tailwinds. We expect mid-to-high single-digit revenue growth and disproportionate profit growth in 2026-2027, supported by strong cash generation of CNY13.7B in operating cash flow and continued capital returns through dividends and buybacks.

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Research Alert: Cprt: Earnings Ahead Of Expectations; Executes Massive Buybacks

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