May 13, 2014
10:02 EDT WB, SINA, TWTR Weibo rises after Goldman starts coverage with Buy rating
Shares of Chinese microblog Weibo (WB) are climbing after Goldman Sachs initiated coverage of the stock with a Buy rating in a note to investors earlier today. Weibo has been described as China's version of Twitter (TWTR). WHAT'S NEW: Weibo is attracting a growing number of users and content providers, Goldman analyst Piyush Mubayi wrote in a note to investors earlier today. The company's support from SINA (SINA) and Alibaba increases the certainty of its revenue outlook, Mubayi believes. Weibo should become profitable this year and its net profit margin should reach 17% by 2015, predicted the analyst, who placed a $24 price target on the shares. WHAT'S NOTABLE: Yesterday Gene Munster, an analyst at research firm Piper Jaffray, initiated coverage of Weibo with an Overweight rating and a $25 price target. He predicted that the company's growth would accelerate, and said its valuation should exceed that of Twitter over the longer term. PRICE ACTION: In early trading, Weibo advanced 34c, or 1.7%, to $19.86. The stock closed at $17.86 on Friday.