[ET Net News Agency, 18 January 2021] Morgan Stanley raised its target price for Weimob
Inc (02013) to HK$24 from HK$16 and maintained its "overweight" rating.
Weimob sees much room for improvement in decentralized e-commerce, as the current share
of GMV () is <15% in China versus >50% in the US, the research house said. Weimob's DTC
(direct-to-customer) solution helps merchants accumulate, analyze and operate their
private traffic with revitalization of data assets. Management sees growing demand for
digitalization, and willingness to pay for SaaS (software as a service).
Morgan said the price target hike was based on (1) upwardly revised forecast for
software organic growth, (2) heading acquisition, (3) raising its 2021 software revenue
multiple to 20x as Morgan benchmarked US peers' level, and (4) Morgan's updated USD/CNY
forecast of 6.25 at 4Q 2021. (KL)