Bank of America Securities: Lowering the target price of WB-SW (09898) to HK$55, first-quarter performance roughly in line with expectations.

Bank of America Securities released a research report stating that WB-SW (09898) first-quarter performance roughly met expectations. Due to weak advertising spending trends, the bank lowered its forecast for Weibo's 2026 revenue growth to a year-on-year increase of 4%, and adjusted its net profit forecast to a year-on-year decrease of 14%. Due to the decrease in profit forecast, the target price was lowered from HK$62 to HK$55, reiterating an underperform rating, citing the company's weak growth momentum. The report pointed out that Weibo's advertising revenue growth has rebounded, while profits have declined. Revenue increased by 6% year-on-year (1% in RMB terms) to USD 421 million, in line with market expectations of USD 418 million. Advertising revenue increased by 9% year-on-year (3% in RMB terms), mainly driven by Internet services, local life, and automotive verticals. Non-GAAP net profit was USD 92 million, a 14% decrease year-on-year, in line with market expectations of USD 89 million.