Piper Jaffray Neutral On NetEase.com
Piper Jaffray is out with a research report on NetEase.com, Inc. (NASDAQ: NTES) and it has a Neutral rating and a $51 price target on shares.
In a note to clients, Piper Jaffray writes, "NetEase reported better-than-expected 2Q results with both revenue and EPS exceeding our estimates and Street consensus. Net revenue came in at $268.2mil, well ahead of our estimate of $243.4mil and Street consensus of $248.4mil. GAAP EPS of $0.91 was above our estimate of $0.77 and Street consensus of $0.79. Online game revenue grew 15.4% q/q (40.2% y/y) to $244.1mil, well exceeding our estimate of $221.3mil, mainly driven by continued performance of its in-house developed game portfolio and licensed game WoW. We rate NTES shares Neutral with a $51 PT, based on 12x CY11E EPS plus net cash. We will follow up with more details shortly."
Shares of NTES gained 35 cents yesterday to close at $49.30.
