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Goldman Sachs Maintains a 'Neutral' on SINA Corporation (SINA); Q2 Review: Another Year of Investment?

August 16, 2012 10:53 AM EDT Send to a Friend
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Price: $40.19 --0%

Rating Summary:
    20 Buy, 6 Hold, 2 Sell

Rating Trend: = Flat

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    Up: 0 | Down: 0 | New: 6
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Goldman Sachs maintains a 'Neutral' on SINA Corporation (NASDAQ: SINA) price target of $60.00.

Analyst, Piyush Mubayi, said, "Takeaways: (1) Ad revenues grew 12% yoy, mainly on strong FMCG and internet/telecom categories offsetting auto/financial weakness. (2) Weibo generated 10% of the advertising revenues in 2Q, following the launch of its brand ad system in April. Management said that 75%-80% of Weibo advertisers also advertise on the Sina portal, suggesting substantial cannibalization between the two properties. Weibo-related cost was US$38mn in 2Q, vs. our estimated revenue of US$10mn. (3) Gross margin of 52.0% contracted by 4.3pp yoy, on higher labor, infrastructure, and content expense. As expected, Sina was loss-making on the operating profit level."

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 $50.90 yesterday.




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