NTES: 4Q15 Results May Be Driven by Mobile Games Upside; Maintain Buy and Raise Price Target
NTES will report 4Q15 results on Wednesday, February 24th after the close of the market followed by an 8pm EST conference call. NTES is highly likely to deliver 4Q15 results better than consensus expectation of net revenue at $1,152.9M (107% Y/Y growth) driven by robust mobile games growth as well as mobile advertising growth. We believe that NTES can continue its strong growth momentum in mobile games because of its strong content development capability, which has an advantage over any distribution platform. We maintain our Buy rating and raise our price target to $168.00.