UPDATE: Tigress Financial Initiates Coverage On Weibo

Earlier Tuesday, Tigress Financial analyst Philip Van Deusen initiated coverage on Weibo (NASDAQ: WB) with a Buy rating based on the notion that the platform has the "greatest potential to generate advertising revenue in the Chinese social media industry."

Over the next 12 months, Van Deusen forecasts 78 percent sales growth from $198.6 million to $353.4 million and NOPAT from -$67.8 million to $195.1 million. As a "strong" driver of growth, Van Deusen pointed to Alibaba's $585.8 million investment in the company. He noted Weibo's management has called the partnership with Alibaba a "difference-maker" for their advertising and marketing revenues.

Despite having a high valuation, Van Deusen believes Weibo is more attractively valued than its peers based on a P/S multiple for the next 12 months. He further said the price is justified by the company's growth profile and exposure to the Chinese consumer.