Piper Jaffray Raises Price Target on Weibo (WB) Following 1Q Beat
Piper Jaffray reiterated an Overweight rating on Weibo Corp (NASDAQ: WB), and raised the price target to $26.00 (from $22.00), following the company's 1Q earnings report. Weibo reported Q1 revenue of $119.3 million, 5% ahead of the Street's $113.9 million. Q1 PF EPS was $0.07 vs the Street's $0.02. Weibo guided Q2 revenue to $138-143 million, up 3% at the midpoint vs the Street's $135.8 million.
Analyst Gene Munster commented, "Weibo posted Q1 revenue 5% ahead of Street expectations and guided Q2 revenue up 3%, demonstrating that concerns last quarter around macro and Alibaba budget changes do not hurt the long-term trajectory of the business. Further, Weibo showed strong growth in SME revenue (up 136% y/y) and Key Account revenue (up 62% y/y), noting an acceleration in Key Account interest. Bigger picture, we continue to believe that Weibo ad loads are low compared to U.S. social media companies, opportunities remain in video and display, and the company can continue to see the margin leverage that we have witnessed over the past several quarters. We maintain our Overweight rating and raise our price target to $26."
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Shares of Weibo Corp closed at $23.08 yesterday.