NetEase (NTES) stock surged over 5% in the pre-market trading session on Monday, buoyed by renewed optimism surrounding the company's growth prospects and a more positive outlook on the Chinese market.
Analysts at Morgan Stanley highlighted NetEase's potential for further growth, citing the success of its Marvel-inspired game "World of Titans" and the company's defensive market position as a leading online game developer and operator in China. The broker maintained a "Buy" rating on the stock with a bullish price target.
Additionally, strategists at Goldman Sachs expressed a bullish stance on Chinese stocks, predicting benchmarks could rise around 20% by the end of 2025. They cited improving sentiment and liquidity conditions, along with favorable policy clarity, as potential catalysts for a recovery in the Chinese market. Goldman recommends investors increase exposure to sectors like technology, infrastructure, and consumer services.