UPDATE: Morgan Stanley Reiterates on NetEase as Game Portfolio Expansion is Well Under Way

In a report published Thursday, Morgan Stanley analyst Timothy Chan reiterated an Overweight rating on NetEase NTES, and raised the price target from $77.00 to $79.00. In the report, Morgan Stanley noted, “We reiterate OW given its quality game pipeline, attractive valuations and strong cash flow. NetEase is making inroads into mobile games with self-developed and licensed titles. Game out-licensing could turn into a new revenue driver.” NetEase closed on Wednesday at $71.55.