Citi upgrades Qutoutiao (NASDAQ:QTT) from Neutral to Buy but trims the target from $16 to $14 due to the high share count and a slight estimates revision.
Earlier this month, QTT priced an offering of 3.3M shares from the company and 6.7M by selling shareholders.
QTT shares are up 3.6% pre-market to $9.05.
More details from the upgrade:
Analyst Alicia Yap cites an improved risk/reward balance after the 24% pullback that followed the secondary offering.
Yap says user counts remained solid last month and the company could capitalize on deeper collabs with Taobao merchants and Alibaba's marketing cloud for user retention.
Now read: Qutoutiao In Fundraising Frenzy »
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