Saw their stock jump on Tuesday after catching an upgrade by
In a research note on Monday, analysts led by Alex Yao turned positive on Internet stocks over the next few weeks, saying the sector was “unusable” for the next six to 12 months.
Yao and his team have raised their ratings in Tencent Holdings (Ticker: TCEHY) and Alibaba Group (BABA) and
Excess weight from (NTES), from low weight in mid-March
Shares of Alibaba closed up 7% in Hong Kong on Tuesday, while Tencent rose 5.26%. NetEase and
(3690: HK) Their stock rose 6.40% and 6.24%, respectively.
Yao notes that investors’ attitudes toward China’s Internet sector have improved significantly since policy developments in March. He was referring to Vice Premier Liu’s March 16 statement on pro-economic growth, which promised to support the economy and financial markets after the sharp sell-off.
With the positive developments, Yao and his team have stated that they believe that the major risks in this sector have diminished, especially in the case of regulatory risks, the receipt of American deposits and the possible extinction of geopolitics.
But analysts say they still expect “significant negative risks” for some stocks to reach consensus for the second quarter.
(BIDU) Covid-19 restrictions affect revenue and earnings as Alibaba and Maituan.
Write to Lina Saigol at [email protected]