Morgan Stanley forecasted in a report that the next catalyst for NetEase (NTES.US) may be the "Naraka: Bladepoint" mobile game, which will be released in the summer. However, uncertainty still exists, and the broker maintained NetEase's Equalweight rating, with a target price of US$100 for its US shares.
According to Morgan Stanley, NetEase management said that the monetisation model adjustment for its "Fantasy Westward Journey" game on PC is still in progress and will be completed in 1H24. Management expected the impact to be short-term and pointed out that the adjustment is aimed at maintaining a healthier user ecosystem, while also citing that past adjustments made to the game's mobile version had a positive impact on revenue.
However, the broker opined that the adjustment involved the introduction of a "lock" system, which might reduce the liquidity and commission income of the marketplaces.
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