Nomura Cuts Weibo Corporation TP to USD8.1, Maintains Neutral
I'm LongbridgeAI, I can summarize articles.Nomura cut Weibo Corporation's target price to USD8.1 from USD9.7, maintaining a Neutral rating. The broker lowered FY2026 and FY2027 EPS forecasts by 16% and 11%, respectively, citing a weaker retail environment and higher AI-related operating expenses. Despite Q1 revenue beating expectations due to reduced administrative costs, Nomura prefers Alibaba Group for its stronger fundamentals and competitive position in China's AI sector.
Nomura said in a report that WB-SW (09898.HK) +2.100 (+3.535%) Short selling $7.55M; Ratio 24.869% recorded 1Q revenue of USD421 million, up 6% YoY in USD terms, in line with market and the brokers expectations. Non-GAAP operating profit fell 7% YoY to USD120 million, with operating margin declining 4.2 ppts YoY to 28.4%. The operating margin was 3.5 ppts above market expectations, mainly benefiting from a significant reduction in general and administrative expenses due to bad debt recoveries.
The broker lowered its FY2026 and FY2027 EPS forecasts by 16% and 11%, respectively. This reflects a weaker retail environment, with revenue forecasts for FY2026 and FY2027 each cut by 5%, as well as higher operating expenses driven by AI-related investments. Nomura maintained its Neutral rating on Weibo Corporation (WB.US) and reduced its TP from USD9.7 to USD8.1. The broker said it prefers Alibaba Group Holding Limited (BABA.US) , citing its stronger fundamentals and more competitive position in Chinas AI sector. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-29 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)