NetEase initiated with an Equal Weight at Barclays

Barclays initiated coverage of NetEase with an Equal Weight rating and $104 price target. The analyst says China’s online gaming market is maturing while NetEase has high-market share and potentially peak margins. The company has successfully expanded its game genres in recent years but hit games are becoming harder to come by going forward and may matter less given its highly diversified portfolio and natural cannibalistic nature of the business, the analyst tells investors in a research note.