What changed
$NTES — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $9.4B | EPS $17.46 vs $15.39 🟢
💡 Consensus EPS was $15.39; actual $17.46 represents a 13.4% beat. The market appears to discount this as one-off, keeping the trailing P/E below 8x. I expect mid-single-digit organic growth and a rerating to at least 9x, which implies a $160+ stock price.
📉 Reward/risk: 2.14:1
🏢 Business Quality: 8/10 - Market-leading gaming IP with high barriers to entry and 60%+ gross margins, but business is hit-driven and exposed to China regulatory risk.
📊 Valuation: cheap - Trailing P/E 7.2x vs 5-year average ~18x and peers at 15x. Excluding one-time gains, normalized P/E ~12-14x, still attractive.
🔮 Catalyst: Q4 2024 earnings beat
💰 Entry: $125.93, stop $110, target $160
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/NTES0616