UPDATE: Deutsche Bank Cuts PT to $51 on Netease.com on Weak WoW Revenue

Deutsche Bank reiterated its Hold rating on Netease.com

and reduced its price target from $56 to $51. Deutsche Bank noted, "NetEase's 3Q revenue was largely flat QoQ and YoY. We estimate that revenue from World of Warcraft (WoW) has declined for five quarters in a row. Lackluster 3Q results indicate that growth from all in-house developed games is just sufficient to offset continued weakness in WoW. Nevertheless, we expect the situation to gradually improve over the next 12 months, as WoW recovers its usage. We expect flagship games (FWJ and WWJ 2) to move into a stagnant phase in 2013, while other in-house developed games drive total gaming revenue growth to 7% in 2013E." Netease.com closed at $50.30 on Wednesday.