Weibo price target lowered to $8 from $8.70 at BofA

BofA lowered the firm’s price target on Weibo (WB) to $8 from $8.70 and keeps an Underperform rating on the shares following quarterly results. The firm notes Weibo’s topline was up 4% year-over-year at $473M, above consensus’ $444M. Ad revenue growth was up to 5% year-over-year mainly driven by e-commerce, local services and auto. With that said, non-GAAP net profit of $66M was below consensus’ estimate on higher operating expenses and tax, and monthly active users and daily active users declined by 4% and 3% year-over-year due to product transition following company’s revamp of homepage to interest-based feed.