NetEase Stock Surpasses Analyst Target, What’s Next for Investors?
In recent trading, shares of NetEase, Inc. (Symbol: NTES) have exceeded the average analyst 12-month target price of $118.50, currently priced at $122.76 per share. When a stock reaches an analyst’s target, the analyst typically has two options: downgrade based on valuation or adjust their target price upward. Analyst reactions may also vary based on the fundamental developments affecting the stock price—if the company’s outlook improves, it might warrant a higher target price.
Analyst Target Overview
There are 14 different analyst targets within the Zacks coverage universe for NetEase. While the average is a mathematical calculation, some analysts hold lower targets; one predicts a price of $104.00. Conversely, another analyst estimates a target as high as $127.00. The standard deviation among these targets is $6.711.
Understanding the Average Target
The purpose of evaluating the NTES average target price is to reflect a “wisdom of crowds” approach, which aggregates insights from various analysts rather than relying on a single opinion. As NTES has crossed above the average target price of $118.50 per share, this development signals investors to reassess whether $118.50 is merely a waypoint to an even higher target or if the valuation has become too stretched, prompting considerations to take profits.
Analyst Ratings Breakdown
| Recent NTES Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 14 | 12 | 12 | 12 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 1 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.13 | 1.29 | 1.29 | 1.29 |
The average rating is based on a scale from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. Data used in this article comes from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
