UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on NetEase

In a report published Friday, Credit Suisse Group reiterated its Outperform rating on NetEase NTES, but lowered its price target from $72.00 to $69.00. Credit Suisse noted, “Due to lower than expected 3Q result, we cut NetEase's EPS by 6%/9% in 2012/2013. As such, we cut our target price from US$72 to US$69, implying 10x ex-cash PER in 2013. Despite the weak price performance in the near-term, we maintain our OUTPERFORM rating on NetEase due to: (1) among the best game developer in China; (2) strong cashflow stream; (3) undervalued non-game business; (4) dividend and share buyback program to support stock price.” NetEase closed on Thursday at $47.31.