LB Takeaway | Microsoft, Disney price target cut by double digit while Kuaishou's boosted by 9%

Goldman Sachs: Maintain NetEase -S "Buy" rating, target price of HK $197

Based on today's closing price of HK $151.8, this price means that there is still 30% room for growth!

NetEase's new mobile game Diablo: Immortal is now available on all major platforms after a delay of more than a month, and the bank sees a positive short-term impact on the stock price.

According to the report, the game may be the only large-scale mobile game newly launched in the mainland throughout the year, so the competition risk is limited. In addition, the participation and revenue of overseas versions remained stable in July. According to the bank's forecast, within one year of the launch of the domestic version, the revenue will reach RMB 5.1 billion; 3 million monthly active users; the average annual revenue per user is RMB 1,708, and under basic circumstances, it outperforms the revenue of "Harry Potter: Magic Awakened" by more than 4%.

UBS: Maintains Kuaishou -W "Buy" rating, price target raised 9% to HK $104 from HK $95

Based on today's closing price of HK $84.65, this price means that there is still 23% room for growth!

The bank believes that Kuaishou's fundamentals will surpass its peers and its valuation is reasonable, driven by the growth of e-commerce and advertising market share, as well as good cost control execution.

According to the report, it is optimistic that Kuaishou's e-commerce GMV has potential upside, and the growth rate of e-commerce business after the 616 Shopping Festival will accelerate, mainly driven by the rapid growth of new brand merchants and own brands, as well as active buyers. The bank raised its forecast growth rate of GMV for the second quarter and full year from 24%/31% to 26%/33%. In addition, e-commerce performance will bring synergy effect to advertising, and media LIVE revenue has room to rise. At the same time, it is expected that operating income in the fourth quarter will achieve a non-US GAAP operating profit of RMB 471 million.

Wells Fargo: Maintains Microsoft's "overweight" rating, cuts price target by 12.5% to $350 from $400

If calculated at yesterday's closing price of $258.83, this price means that there is still 35% room for improvement!

The bank believes the situation is very complex heading into the fourth quarter, with key early indicators of a recessionary environment becoming more apparent. While these macro challenges could put various segments of Microsoft's business at risk and curb some of its recent impressive growth, analysts believe the current environmental impact has not changed Microsoft's fundamental value proposition or competitive positioning any factor. Furthermore, Microsoft is one of the companies best positioned to gain share growth if a market downturn causes global businesses to consolidate IT spending.

Wells Fargo: Maintains Disney's "overweight" rating, cuts price target by 15% to $130 from $153

If calculated at yesterday's closing price of $102.69, this price means that there is still 27% room for improvement!

The bank remains bullish on Disney, citing catalysts for the stock's rise including more progress than investors expected in net Disney + subscriber growth and a possible ESPN + package. Still, analysts cut their forecasts for Disney + subscribers, consumer goods, games and publishing (CPGP) and advertising to reflect the impact of the recession, arguing that expectations need to be readjusted to align with Disney's stock price.

JPMorgan Chase: Maintains Weibo's "Neutral" rating, lowers price target by 8% to $22 from $24

If calculated at yesterday's closing price of $19.84, this price means that there is still 11% room for growth!

The bank sees that Weibo ad spending has continued to recover since June, but the bank believes that due to the slow recovery in consumption and cost-cutting in the Internet industry, it believes that the recovery will be milder than expected; given that brand ads account for most of its revenue, The bank believes that Weibo is in a post-cycle cycle.

The bank lowered its revenue forecast for the second half of the year by 7%, and believes that the continued weak demand for brand ads into the rest of the year, coupled with the uncertainty of the epidemic and weak consumer confidence, is expected to recover more slowly than in 2020. Based on the gradual track of recovery, the Group's revenue and adjusted earnings estimates for next year are lowered by 7% and 13%, respectively.