NetEase Becomes Dual Primary-Listed Company Tomorrow, Morgan Stanley Maintains Buy with $158 Target

According to Morgan Stanley, NetEase (NTES.US, 09999.HK) will become a dual primary-listed company tomorrow, June 30, ahead of the bank's previous expectations. The firm anticipates NetEase H-shares could be added to Stock Connect programs within one to two months, potentially triggering a valuation repricing.

The bank maintains a Buy rating on NetEase stock with a $158 price target, citing three positive catalysts: the PC version of game Seas of Oblivion launching in mainland China on July 9 with a mobile version following in July, and Sword and Fairy World, which entered the market on June 26, reaching the top 5-10 ranking on charts over the weekend with player counts at a two-year high.