NetEase's Ananta Could Drive 2027 Growth, Morgan Stanley Says

MT Newswires Live09-29 00:13

NetEase (NTES)'s upcoming global launch of "Ananta" could become a major growth driver in 2027 and support a "re-rating" of the shares, Morgan Stanley said in a note emailed Monday, naming the company a "Top Pick."

The investment bank said Ananta, scheduled to launch Jan. 15, 2027, has the potential to gain a global audience despite arriving about eight weeks after Take-Two Interactive Software's (TTWO) Grand Theft Auto VI. Its "anime-style" presentation, "free-to-play" model and different themes and platforms could help distinguish it from GTA VI, the report said.

The firm forecasts annualized Ananta revenue of 6 billion yuan ($893.8 million) in its base case, with about half coming from "overseas" markets, and sees the title as NetEase's main "growth driver" next year, according to the report.

The firm said NetEase's established games continue to perform well, "easing concerns on competition" and a high base, while gaming remains relatively defensive "amid weak domestic consumption" in China.

Morgan Stanley has an overweight rating and a $163 price target on NetEase.

Shares of the company were up 5.2% in Monday afternoon trading.

Price: 121.39, Change: +5.98, Percent Change: +5.18

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