UPDATE: Mirae Asset Raises NetEase's PT

According to a research report published this morning, Mirae Asset has increased NetEase's NTES PT from $61 to $66. Mirae Asset commented in the report, "Despite the lack of entry in SMW (SocialMobile-Web) games and challenges in new growth areas (mobile, SNS, online shopping, online video and HTML5), we believe the Blizzard-NTES Partnership (BNP) is value accretive because of future pipelines. We estimate its gross margin fell to 17% in 2011 and will fall further to 11% in 2012 due to declining revenue of World of Warcraft (WOW). Diablo 3 (D3) should reach one-third of WOW's revenue size and mitigate WOW's decline before the launch of Project Titan, Blizzard's next generation MMORPG (Massive Multiplayer Online Role Playing Game), in 2014-15." Mirae Asset maintains its Buy rating on NetEase, which closed yesterday at $55.95.