Here's Why Benchmark Remains Bullish On Weibo

Benchmark analyst Fawne Jiang lowered the firm's price target on Weibo Corp (NASDAQ:WB) to $56 from $70 and kept a Buy rating on the shares. The price target implies an upside of 105.3%.
The re-rating came after the company reported "solid" Q4 results that beat consensus on top and bottom line.
Alibaba Group Holding Ltd (NYSE:BABA) ad budget uncertainties and a non-ad revenue decline will likely pressure revenue growth.
At the same time, a step-up in content investment will likely depress margins in FY22.
Jiang thinks downward earnings revisions will likely lead to less upside but doesn't see structural changes to the fundamentals at Weibo.
Price Action: WB shares closed lower by 5.5% at $25.78 on Friday.

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