Citi Raises NetEase Price Target Ahead of Q4 Earnings

NEW YORK — Citi analysts have raised their price target for NetEase (NTES) stock to $121 per share, citing optimism about the company’s upcoming Q4 2024 earnings report. The new target represents an 8.3% upside from the previous $115, with the firm maintaining a Buy rating on the stock.

The revised forecast comes as NetEase prepares to release its Q4 2024 earnings on Feb. 20, 2025. Citi projects revenue of 27.3 billion yuan ($3.8 billion), a 0.6% year-over-year increase, driven largely by a 0.4% rise in online game revenue to 21 billion yuan ($2.9 billion).

Analysts attribute the growth to the successful launch of Marvel Rivals, a free-to-play hero shooter game featuring characters from Disney‘s Marvel franchise. The game, which debuted in early December, generates revenue through in-game cosmetics and battle passes. Season 1 of Marvel Rivals launched earlier this month, further boosting engagement.

NetEase has a strong track record of surpassing Wall Street expectations, beating earnings per share (EPS) estimates in five of the last eight quarters and revenue estimates in six. For Q4 2024, Wall Street anticipates EPS of $0.00, though specific figures were not disclosed.

Overall, NetEase stock holds a consensus Buy rating among analysts, with eight Buy and one Sell recommendation over the past three months. The average price target stands at $111.72, with a high of $125.50 and a low of $82, suggesting a potential 12.5% upside for investors.