Citi raised its price target on Momo Inc. (NASDAQ: MOMO) to $56.00 (from $43.00) while maintaining a Buy rating.

Analyst Hillman Chan says the company's margin pressure for streamer/guild cost remain manageable and S&M efforts are more performance-driven and selective. The analyst likes the strong Q1 beat and guidance. Further Chan notes the positive outlook from content upgrade and guild co-op.