Lyon: Upgraded NETEASE MUSIC (09899) to "highly confident outperform the market" rating, raised target price to 200 Hong Kong dollars.

Lyon released a research report stating that it has raised its rating on NETEASE MUSIC (09899) to "highly confident outperforming the market", with a target price of 200 Hong Kong dollars, up from 165 Hong Kong dollars. The group's long-term theme is stable, with a forecasted compound annual growth rate of core EBIT of 17 to 19% over the next 3 to 5 years. Lyon also raised its forecast for adjusted net profit for the years 2025 to 2027 by 7 to 19%. Lyon noted that the profit of Cloud Music in the second half of last year was surprisingly strong, with adjusted EBIT growing by 119% year-on-year, outperforming market and bank forecasts by 39% and 30% respectively.