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9999: Upcoming Dividend Review And Completed Buyback Will Drive Future Market Optimism

Analysts Lift NetEase Price Target as Growth and Profit Margins Improve Amid Buyback and Dividend News

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9999
AnalystConsensusTarget
Not Invested
Published 24 Nov 2024

Update shared on 09 Dec 2025

Fair value Increased 0.74%
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AnalystConsensusTarget's Fair Value
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1Y
38.3%
7D
-3.5%

Analysts have raised their price target on NetEase slightly to approximately $258, reflecting modestly stronger expectations for revenue growth, profit margins, and valuation multiples.

What's in the News

  • Chartmetric integrated chart data from NetEase Cloud Music, giving global music professionals structured access to China specific streaming charts and listening trends, especially among under 35 users (Key Developments)
  • NetEase Cloud Music rankings added to Chartmetric include the China Hot 100 Songs Chart (weekly), International Hot 100 Songs Chart (weekly), and International New 100 Songs Chart (daily), enabling closer monitoring of breakout tracks in mainland China (Key Developments)
  • From July 1, 2025 to September 30, 2025, NetEase repurchased no additional shares, but confirmed completion of its $2.0 billion buyback of 22.1 million shares under the November 17, 2022 authorization (Key Developments)
  • NetEase scheduled a board meeting on November 19, 2025 to review unaudited results for the quarter ended September 30, 2025 and to consider a third quarter 2025 dividend (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly from 255.93 to 257.83, reflecting a modestly higher intrinsic value per share.
  • The discount rate edged down marginally from 9.34% to 9.34%, suggesting a slightly lower implied risk premium.
  • Revenue growth was nudged higher from 8.77% to 8.77%, indicating a very small upward revision in long term topline expectations.
  • The net profit margin increased slightly from 30.68% to 30.69%, pointing to a marginal improvement in forecast profitability.
  • The future P/E has risen modestly from 22.56x to 22.62x, implying a small expansion in expected valuation multiples.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.