Morgan Stanley Raises NetEase Price Target to $158, Maintains Overweight

Morgan Stanley raised its price target on NetEase, Inc. (NASDAQ:NTES) to $158 from $154 on May 26, maintaining an Overweight rating on the shares. The adjustment comes as NetEase is considered one of the top cheap stocks with strong Buy ratings on Wall Street.

Rating Change

• Previous Price Target: $154
• New Price Target: $158
• Rating: Overweight
• Date of Change: May 26, 2026

Analyst Rationale

Analysts at Morgan Stanley stated that revenue estimates remain "largely unchanged," suggesting the price target increase may reflect improved valuation or earnings expectations without a significant change in revenue forecasts.

Context

This recommendation comes amid volatility in Chinese tech stocks due to geopolitical tensions and regulatory policies. However, NetEase retains strong ratings from other analysts and is among the favored stocks in the sector.

What to Make of It

The price target increase reflects Morgan Stanley's confidence in NetEase's near-term prospects, but investors should monitor actual revenue developments and regulatory challenges that could impact the stock's performance.