UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on NetEase Following Solid 2Q Beat

In a report published Thursday, Deutsche Bank analyst Vivian Hao reiterated a Buy rating on

, and raised the price target from $64.00 to $73.00. In the report, Deutsche Bank noted, “NetEase registered a total 2Q rev of Rmb2,414m (20.4% YoY/6.9% QoQ), missing our est. by 3% but beat Street by 8%, mainly due to lower-than-expected online gaming revs growth(18% YoY/ 1.9% QoQ, 7% short of DBe), which was offset by strong ad segment performance (+33.3% YoY/+64.5% QoQ, 16% better than DBe). Thanks to tax benefit (some subsidiaries have renewed to be qualified for preferential tax as high-tech enterprises) and share buyback carried out during the qtr, non-GAAP EPADS beat our forecast by 10%/Street by 13%.” NetEase closed on Wednesday at $61.45.