0654 GMT - NetEase may need a major blockbuster title launch for its stock to outperform in 2025, Daiwa analysts John Choi and Candis Chan say in a research note. the game maker's 4Q results didn't hold any major surprises, with revenue weighed by non-game businesses as management shifted its focus to improving profitability for these businesses, they say. The company also plans to adjust its team structures based on anticipated market demand to ensure operational efficiency, according to management. Daiwa thinks a key downside risk for NetEase would be lower-than-expected new games sales. Daiwa maintains a buy call on NetEase's H-shares but lowers its target to HK$180.00 from HK$195.00. Shares are last at HK$158.00. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 21, 2025 01:55 ET (06:55 GMT)
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