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 ."
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Chinese tech stocks seek direction following slate of new analysts' views