UPDATE: Credit Suisse Initiates Coverage On Weibo

In a note date June 10, Credit Suisse analyst Dick Wei initiated coverage on Weibo (NASDAQ: WB) with an Outperform rating and announced a $23 price target.

With 144 million monthly-average users, Weibo is China's leading micro-blogging platform.

The company's main source of revenue is its marketing services, but it has also begun a non-ad business including web/mobile game publishing, premium memberships. data licensing and social e-commerce.

Wei is projecting strong growth for Weibo in the coming years. For 2015 he is looking for earnings to grow to $87 million then double to $174 million in 2016. According to Wei, the primary drivers for this will be 50 percent growth to revenue over the period, as well as margin improvement.

Shares of Weibo are up ~1 percent to $19.20 following the Credit Suisse upgrade.