At present, Weibo's 20-dollar share price is attractive and has a higher risk-return rate.

JG Capital, the US investment company, released a study today, giving Weibo NASDAQ:WB shares a "overweight" (overweight) rating of $25 for the target.

The following is a summary of the contents of the report:

We first rated the Weibo stock rating as "overweight" with a target price of 25 dollars

Summary：

The stock rating of Weibo was first rated as "overweight" for the following reasons:

1. We are bullish on the strategic value of Weibo in the Chinese internet market, as Weibo has increasingly become a leading social platform for the Chinese market, where Internet users can closely monitor and openly discuss major news and social events;

2 We anticipate that Weibo will continue to face stringent content controls from the government, but does not believe that Weibo is at risk;

3. We believe that the long-term impact of the competition's micro-credit is likely to be limited, and other social platforms, including micro-letters, cannot replace microblogs;

4 We expect that the user participation in the 2014-year microblog will show a better picture;

5 cooperation with Alibaba (rolling information) group and advertising revenue guarantee contribute to the commercialization process and profitability of Weibo;

6 We believe that Weibo has the huge potential to provide one-stop service for the brands on its platform.

-Performance Expectations:

We estimate that the 2014 Weibo total revenue of 368 million U.S. dollars, an increase of 95%. We estimate that the 2014 microblog advertising revenue of 293 million U.S. dollars, an increase of 97% per cent, advertising revenue of 75 million U.S. dollars, the year-on-year growth of 87%. We also expect the 2015 Weibo total revenue to be 556 million U.S. dollars, an increase of 51%.

While Weibo continues to invest in growth, we expect revenue growth and leverage to help Weibo make a profit in the 2014 and 2015 years. We expect a 14% increase in microblog operating margins in 2014 (not in accordance with US GAAP) than in 2013.

-Stock rating and target price:

We continue to believe that in the short to long term, the partnership between Weibo and Alibaba, the increased potential for user engagement, and the growing commercialization of the microblogging platform should help Weibo to show strong revenue growth and improved profitability. We believe that the current micro-blogging 20-dollar stock is attractive and has a higher risk return. We first rated the microblog stock rating as "overweight" with a target price of 25 dollars.