UPDATE: Mirae Asset Maintains Buy Rating, Raises PT for NetEase

In a report published earlier today, Mirae Asset Global Investments Group maintained its Buy rating for NetEase.com

and raised its price target from $66.00 to $68.00, in response to the recent release of the video game

. Mirae Asset said in its report “NTES’ 1Q12 top line, pre-SBC operating profit, and GAAP net income were 4%, 15% and 14% above our estimates, respectively, due to strong in-house games and tight cost control measures. We are, however, turning cautious on NTES because we believe the market might be too optimistic on the prospects of

(D3). We believe D3 faces at least three obstacles due to which it may only generate one-third to one-fourth of the revenue of

(WOW): (1) its gameplay is closer to

(SC) than to WOW, which means ARPU would be low; (2) regulatory approval; (3) global server activation, which means, in China, D3 is unlikely to be monetized differently from elsewhere. We continue to like NTES' in-house game pipeline, which will feature a set of games that are different from its traditional MMOG genre; and we have confidence on the company's cost discipline." NetEase.com closed yesterday at $57.70.