Jefferies Starts SINA Corporation (SINA) at Buy, Price Target Allows For 29% Upside
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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!
Jefferies initiates coverage on shares of SINA Corporation (NASDAQ: SINA) with a Buy rating and $150 price target.
Sina Weibo has developed 100 million plus active users, which 80 thousand are among China's most well-known celebrities. Jefferies notes that the company is well ahead of its competition with its short browsing time, average page views per user a day, and daily unique visitors.
The firm comments that even with Weibo’s monetization being 18 months away, investments on the Weibo platform will be the key for future monetization from social advertisers. Jefferies checks show that the company's user base captures consumer segments with the highest propensity to spend both online and off line in China. SINA should continue to grow in both internet penetration and consumption power grows given China's urbanization initiatives.
Jefferies reports that, "Sina is China's no. one Internet portal and derives 77% of its revenue from brand advertising, with the rest from mobile VAS. Advertising industry trends favour online ads as Internet emerges as a mainstream media. We expect Sina's online ads revenues to grow 31.5% YoY. We agree with management's strategy to use the cash cow portal to fund for the future –Sina Weibo, in the investment period of 2011-12."
For more ratings news on SINA Corporation click here and for the rating history of SINA Corporation click here.
Shares of SINA Corporation closed at $111.27 yesterday, with a 52 week range of $32.00-$120.48.
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Sina Weibo has developed 100 million plus active users, which 80 thousand are among China's most well-known celebrities. Jefferies notes that the company is well ahead of its competition with its short browsing time, average page views per user a day, and daily unique visitors.
The firm comments that even with Weibo’s monetization being 18 months away, investments on the Weibo platform will be the key for future monetization from social advertisers. Jefferies checks show that the company's user base captures consumer segments with the highest propensity to spend both online and off line in China. SINA should continue to grow in both internet penetration and consumption power grows given China's urbanization initiatives.
Jefferies reports that, "Sina is China's no. one Internet portal and derives 77% of its revenue from brand advertising, with the rest from mobile VAS. Advertising industry trends favour online ads as Internet emerges as a mainstream media. We expect Sina's online ads revenues to grow 31.5% YoY. We agree with management's strategy to use the cash cow portal to fund for the future –Sina Weibo, in the investment period of 2011-12."
For more ratings news on SINA Corporation click here and for the rating history of SINA Corporation click here.
Shares of SINA Corporation closed at $111.27 yesterday, with a 52 week range of $32.00-$120.48.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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