02:20 AM EST, 03/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

With the in-line 2023 results and a bullish outlook for 2024, we raise our 2024 EPADS forecast to CNY50 (from CNY47.15) and start 2025's at CNY57. Our 12-month target price stays at USD130, at 18.7x our projected 2024 EPADS, and a discount to its five-year average of 21x. While this is conservative, we think this is fair given the recent uptick in negative regulatory newsflow in China from end-2023. We expect its Games segment to drive revenue and profit gains in 2024, driven by (i) Naraka Bladepoint Mobile launch by Q2 2024; (ii) international launch of its wildly successful Eggy Party title in Feb. 2024; and (iii) possible launch of other titles, e.g., F2P gacha game Project Mugen, and PC open-world wuxia game Where Winds Meet. We also project further margin improvement from CloudMusic (CM). In Q4 2023, revenue +7% on +10% growth for Games. Gross margin +9.8%pt on margin gains for Games and CM. 2023 net profit +44% on gross margin gains and +92% investment income, offset by higher SG&A and R&D costs.