Morgan Stanley cuts NetEase target, removes as Top Pick

Morgan Stanley lowered the firm’s price target on NetEase to $120 from $135 and keeps an Overweight rating on the shares. The analyst also removed the stock as a Top Pick designation. The firm turned “less bullish for now,” after NetEase being its preferred pick for the last four years. “Where Winds Meet” will be released on July 26, but on PC only with an uncertain monetization plan, the analyst tells investors in a research note. Morgan Stanley sees weaker growth for NetEase in 2024 and 2025 compared to peers due to risks of legacy titles and “tampered expectation” of new titles.