Nomura: Netease's gaming business growth is expected to accelerate in the second half of the year.

Nomura analysts said in a research report that NetEase's gaming business growth is expected to accelerate in the second half of the year. These analysts said that the company's profit in the most recent quarter fell short of expectations, and management pointed out that they may release the highly anticipated new game "SoR" in the third quarter. They pointed out that launching in the summer may "take advantage of strong seasonal factors." These analysts believe that the launch of "SoR", coupled with the normalization of base effects, is expected to help accelerate the growth of its gaming business in the second half of the year to a year-on-year growth rate of 12%. Nomura maintains a buy rating, but after reevaluating the company's various businesses, it slightly lowered the target price of its American Depositary Receipts from $160.00 to $155.00. Its ADR closed at $118.17.