Why Weibo (WB) Stock Is Up Today

NEW YORK (TheStreet) -- Weibo (WB) was gaining 13.2% to $24.32 Thursday after T.H. Capital initiated coverage of the company with a "buy" rating.

The analyst firm set a price target of $24 for the Chinese Internet company. Weibo's will soon see an increase in the number of users and the level of user engagement, according to T.H. Capital analyst Tian Hou.

"User growth can be seen from the rapid Weibo mobile download growth, which reached 1.6 billion download times by August 12, 2014, or growth of 84% from the beginning of the year," Hou wrote. "The engagement level for each hot Weibo has improved 14% Q/Q to an average of 32K in 2Q14 from 28K in 1Q14. The average engagement level for promoted topics increased 8% Q/Q to 104K in 2Q14 from 96K in 1Q14."

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WB Chart WB data by YCharts

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