Citi opens ‘positive catalyst watch’ on Weibo

Citi opened a “90-day positive catalyst watch” on shares of Weibo while keeping a Buy rating on the name with a $12 price target. The firm believes last week’s monetary and fiscal policy stimulus in China, aiming to revive economic growth, is likely to translate to a concerted effort to boost growth in Q4, especially given the seasonal 11.11 promotional period, which should translate to higher ad spend by businesses and brands to boost sales. Citi sees potential upside to Weibo online ad revenues.