|10:54 EDT||VIPS, SOHU, CMCM, JMEI, DANG, WB||China's Weibo, Jumei advance after Citi starts coverage with Buy ratings|
Shares of Chinese microblog Weibo (WB) and Chinese online beauty product retailer Jumei International (JMEI) are rising after Citigroup initiated coverage of both stocks with Buy ratings. WEIBO: Citigroup analyst Thomas Chong initiated coverage of Weibo with a Buy rating, saying that the company has established a solid, popular brand. Moreover, the company's ad revenue should rise as more small and medium businesses look to advertise on the website, Chong wrote. Additionally, Weibo is slated to fully launch a payment system for companies in the second half of 2014 and this system should help the company sell more ads, the analyst forecast. He set a $22.60 price target on the shares. JUMEI: Jumei International has executed well by recommending quality products to its customers and is establishing a trustworthy brand, Chong believes. The company has a loyal customer base of more than 10M and it is likely to shift to selling many more higher margin private label and exclusive products, the analyst stated. He set a $32.60 target on the shares. WHAT'S NOTABLE: Chong also initiated coverage of Chinese Internet companies Sohu.com (SOHU), Dangdang (DANG), Cheetah Mobile (CMCM), and Vipshop (VIPS) with Buy ratings today. Sohu provides online games and a search engine, while Dangdang is an e-commerce company specializing in books. Cheetah Mobile sells applications for the mobile Internet and Vipshop is an online discount retailer. PRICE ACTION: In mid-morning trading, Weibo rose 1.4% to $19.58 and Jumei climbed 5.25% to $29.49.