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NetEase Cloud Music stock initiated with Buy rating at UBS

Published 25/09/2025, 12:52
NetEase Cloud Music stock initiated with Buy rating at UBS
1698
1.59%

Investing.com - UBS initiated coverage on NetEase Cloud Music Inc (HK:9899) with a Buy rating and a price target of HK$350.00 on Thursday.

The investment firm views NetEase Cloud Music as a leading online music platform in China operating within a stable duopoly market that shows improving growth outlook and profitability trends.

UBS highlights the company’s distinctive market positioning in content and community ecosystem, along with solid revenue and earnings potential due to its early monetization efforts.

The firm forecasts NetEase Cloud Music to deliver a 15% online music revenue compound annual growth rate (CAGR) from 2025-29 and a 17% earnings CAGR, exceeding the growth rate of market leader TME.

While the stock currently trades at 23.2x 2026 consensus price-to-earnings ratio, near the high end of its historical range, UBS believes positive investor sentiment and structural advantages in the sector with low macroeconomic sensitivity provide room for further earnings upgrades and valuation support.

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