Piper Jaffray Expects Strong 1Q Results From NetEase.com

According to Piper Jaffray, NetEase.com (NASDAQ: NTES) is expected to post strong 1Q results Wed after the close, on the back of continued strong performance from WoW and a promising start to new game Ghost.

Piper Jaffray said that it is confident in its 1Q revenue and EPS estimates of $225.2mil and $0.66, respectively, with modest upside potential (Street: $234.7mil and $0.71). “Based on our latest channel checks, we feel incrementally more positive newly launched Ghost (April 22, 2011) will likely to become NetEase's next blockbuster. We rate NTES at Neutral on valuation. $48 PT based on 12x CY11E EPS plus net cash.”

NetEase.com closed yesterday at $45.85.