Citigroup: Raises Netease Target Price to $157, Expecting Second Quarter Performance to Meet Expectations.

Citibank released a research report stating that they expect NetEase's performance in the next quarter to meet expectations, with total revenue increasing by 11% annually but decreasing by 1.9% quarterly to 28.3 billion yuan. Net profit under non-GAAP is expected to reach 9.46 billion yuan, below market expectations of 9.66 billion yuan. The bank expects online game revenue to increase by 15.2% annually but decrease by 4% quarterly to 23.1 billion yuan, mainly due to the solid performance of games such as "Fantasy Westward Journey," "Justice," and "YanYun Sixteen Sound," as well as the delayed revenue from the first quarter partially offsetting seasonal weakness. The bank has adjusted its net revenue forecast for NetEase for 2025-2027 by -2.1%, +0.4%, and -3.2% respectively, and its non-GAAP net profit forecast by -1.7%, +1%, and -2.8% respectively, to reflect the downward revision of the forecasted computer game revenue for 2025. The bank has slightly raised its target price from $156 to $157 and maintains a "buy" rating.