Goldman Sachs analyst Fan Liu raised her price target for NetEase (NTES) to $432 upon switching her valuation methodology to sum-of-the-parts from price-to-earnings. The shares closed the trading day down $2.21 to $322.19.

The analyst believes the new model better captures the value from both the company's games and e-commerce segments. 2018 is likely to be the year for NetEase to "significantly diversify" its business, Liu tells investors in a research note. She highlights the company's new games genres, overseas games market and e-commerce opportunity.

The analyst reiterates a Buy rating on the shares. Liu, however, cut her earnings estimates through 2019 by up to 24% to factor in elevated investments in all three areas.