Weibo price target lowered to $67 from $130 at TH Data Capital
TH Data Capital analyst Tian Hou lowered his price target for Weibo to $67 ahead of the company's Q3 earnings report. Based on the analyst's data and calculations, he believes Weibo's Q3 revenue is likely to be slightly better than consensus at $456M and below the low end of its $465M-$475M guidance range. Further, the analyst does not expect a "strong" Q4 either. Weibo is facing multiple issues, including policies in the game and education fronts, competition from new emerging platforms like Toutiao taking market share, and a slowing economy which is likely to put a damper on future ad budgets, Hou tells investors in a research note. The analyst sees these headwinds pressuring Weibo's sales growth but keeps a Buy rating on the shares.