Sina Corp (SINA): Sum Of The Parts = 54% Upside - Brean Capital
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Brean Capital analyst, Fawne Jiang, reiterated the firm's Buy rating on shares of SINA Corporation (NASDAQ: SINA) but raisesd the price target by 54% to $100.
The analyst noted the valuation gap between SINA and its largest asset WB (in which the company is the majority shareholder) and believes the valuation gap between the two companies creates an attractive opportunity for not only public company investors but also potential strategic buyers who might have interest in taking over WB. Factoring in the company's large cash balance ($1.1B) makes the shares appear even cheaper.
As one of the most valuable social media assets in China, WB has continued to show strong user engagement and traffic growth and recorded 318mm mobile app MAU as of July 2016, according to QuestMobile.
The analyst stated "During the period of the Summer Olympics, tracking data shows robust growth in both app download and DAU in August. Furthermore, unlike their global peers who have been struggling with effective monetization, the company has successfully established its advertising model and works closely with both brand advertisers as well as SME advertisers in China".
The $100 PT is up from $65.
Shares of SINA Corporation closed at $73.96 yesterday.
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