In "The Big Banks," Citigroup lowers Weibo's target price to $10.5, rating it "Outperform."

Citi released a report indicating that Weibo (09898.HK)(WB.US) third-quarter financial results slightly missed expectations. Total revenue decreased by 5% year-on-year, and after excluding foreign exchange impacts, it decreased by 4% year-on-year. The adjusted operating profit margin was 30%, down 5.6 percentage points year-on-year, mainly due to a high base effect. Although revenue is expected to improve in the fourth quarter, the bank believes that revenue for the fiscal year 2026 will face dual pressure. Brand advertising business has regained attention, while AI search and commercialization are expected to bring more upside potential.

The bank expects Weibo to maintain a similar dividend payout ratio, implying a yield close to 8%. The bank has lowered its adjusted net profit forecast for the fiscal years 2025 to 2026 by 1%, and the target price for Weibo's U.S. stock has been reduced from $11.5 to $10.5. The rating is maintained at "Outperform."