NetEase On A Path To $20 EPS By 2019

Ronnie Moas of Standpoint Research reiterated his Buy rating on NetEase Inc (ADR) NTES, saying the Chinese online company is on a path to $20 EPS by 2019.

“My target on NTES is $340 for next year. This company is clicking on all cylinders and I do see a path to $20 in EPS by 2019,” Moas wrote in a note.

Related Link: Bernstein Starts Chinese Internet Names: Most Initiated At Underperform

Moas’ new $340 price target on NetEase implies a multiple of 17x to EPS estimate of $20.

“I think you can attach a 17 multiple to that. The multiple is a little bit higher than what I usually apply but it is supported by the growth rate and the fact that 13% of the NTES market cap is in cash with a $5.3 billion dollar cash position against a $40 billion market cap,” Moas highlighted.

At last check, ADRs of NetEase fell 2.23 percent to $297.29.