NEW YORK (TheStreet) -- Shares of Momo (MOMO) were rising in early-afternoon trading on Wednesday as JPMorgan initiated coverage of the Chinese social network app operator with an "overweight" rating.
The firm has a $26 price target on the stock and said the company's expansion into live broadcasting has proven to be the right move, according to TheFly.
Momo's live broadcasting revenue has grown since the 2016 first quarter and are poised to grow further in the near term, the firm noted.
The company recently reported $99 million in revenues for the second quarter and said $57.9 million of that was due to its live video business.
JPMorgan analysts said they expect broadcasting revenues to reach $214 million in 2016 and $418 million in 2017, Benzinga notes.
Momo launched its live video service in the first quarter of 2015.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Momo as a Hold with a ratings score of C. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, the team finds that the stock itself is trading at a premium valuation.
You can view the full analysis from the report here: