helloabc/iStock Editorial via Getty Images
helloabc/iStock Editorial via Getty Images
Chinese tech stocks hunted for direction Wednesday as analysts weighed in with new positive views on Bilibili (NASDAQ:BILI) and NetEase (NASDAQ:NTES) prior to the start of trading.
Bilibili (BILI) shares were down by 1.3% after analyst Daniel Chen started his coverage of the online gaming platform operator with an overweight rating and $35-a-share price target on the company’s stock. Chen called Bilibili’s (BILI) new Story Mode offering “a game changer” that should turn the company profitable by 2024.
Meanwhile, Chen also started his coverage of NetEase (NTES) with a neutral rating and $90-a-share target price. Chen said the online gaming and entertainment platform operator is likely to see growth slow down through the second half of this year. NetEase (NTES) shares slipped by 0.5% in early trading.
Among other well-known Chinese tech and internet stocks, Alibaba (BABA), Weibo (WB), Baidu (BIDU) and Tencent Holdings (OTCPK:TCEHY) all edged into positive territory, while JD.com (JD) and Kingsoft Cloud Holdings (NASDAQ:KC) were in the red.
Kingsoft (KC) slumped by more than 6% in early trading as Citi analyst Brian Gong cut his rating on the company’s stock to neutral from buy. Gong said he made the move because “it may take time for [Kingsoft] to achieve its strategic shift and weak sentiment on the stock could persist for a while.”