Goldman Sachs Cuts Target on SINA (SINA) On Weak Q4 and Outlook
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Price: $58.41 -3.8%
Rating Summary:
19 Buy, 3 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
19 Buy, 3 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade SINA Now!
Goldman Sachs cut its price target on SINA Corporation (NASDAQ: SINA) from $84 to $70 following lower than expected Q1 results and Q1 outlook.
The firm highlighted weak 1Q ad outlook (revs +9% yoy) attributed especially to
declining yoy spend by autos (30%+ of revs), e-commerce, Weibo users slowdown, plans to step up Weibo monetization this year and US$160 million in Weibo-related costs in 2012.
"While Sina’s ad outlook disappointed, we believe the significance could be muted by cyclical factors and category mix, though lower portal profits reduces valuation support," the firm comments. "We think greater focus will be on Weibo advertiser uptake when widespread monetization starts in 2Q, as Weibo is incurring material, growing ongoing costs."
Goldman lowered 2012E-2014E EPS by 25%-56% on lower ad revenues and higher opex.
For an analyst ratings summary and ratings history on SINA Corporation click here. For more ratings news on SINA Corporation click here.
Shares of SINA Corporation closed at $62.95 yesterday, with a 52 week range of $46.86-$147.12.
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The firm highlighted weak 1Q ad outlook (revs +9% yoy) attributed especially to
declining yoy spend by autos (30%+ of revs), e-commerce, Weibo users slowdown, plans to step up Weibo monetization this year and US$160 million in Weibo-related costs in 2012.
"While Sina’s ad outlook disappointed, we believe the significance could be muted by cyclical factors and category mix, though lower portal profits reduces valuation support," the firm comments. "We think greater focus will be on Weibo advertiser uptake when widespread monetization starts in 2Q, as Weibo is incurring material, growing ongoing costs."
Goldman lowered 2012E-2014E EPS by 25%-56% on lower ad revenues and higher opex.
For an analyst ratings summary and ratings history on SINA Corporation click here. For more ratings news on SINA Corporation click here.
Shares of SINA Corporation closed at $62.95 yesterday, with a 52 week range of $46.86-$147.12.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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