(Reuters) - Shares of China-based internet company NetEase Inc (NSQ:NTES - News) rose as much as 8 percent after it posted quarterly results above analysts' estimates, helped by strong demand for its online games.
Online gaming revenue rose 31 percent in the first quarter to $289.2 million, the company said on Wednesday.
NetEase, which develops and licenses online games, also said it would start beta testing four new games in the second quarter.
Analysts at Macquarie Equities Research believe the new games would compete with Chinese rival Tencent Holdings Ltd's <0700.HK> most popular games like "DNF", "League of Legends", and "Blade and Soul".
The brokerage, which raised its price target on NetEase stock to $65 from $55, expects strong momentum in gaming to continue for the rest of the year. Lazard too raised its price target on the stock to $70 from $58, and maintained its "buy" rating.
Earnings for the first quarter were $149.5 million, or $1.14 per American Depository Share, on revenue of $318.2 million.
Analysts were expecting earnings of $1.05 per share on revenue of $310.4 million, according to Thomson Reuters I/B/E/S.
Shares of NetEase were up 3 percent at $60.55 on Thursday on the Nasdaq.
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