UPDATE: Jefferies Trims SINA Corp. (SINA) to Hold; Shift to Mobile, Delay in Fee-Based Revs Provide Many Negatives

August 16, 2012 6:57 AM EDT Send to a Friend
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Price: $46.18 +1.09%

Rating Summary:
    20 Buy, 6 Hold, 2 Sell

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(Updated - August 16, 2012 7:49 AM EDT)

Jefferies downgraded SINA Corp. (Nasdaq: SINA) from Buy to Hold on Thursday morning following SINA's second-quarter results. Jefferies also chopped its price target 31.7 percent from $82 down to $56.

The firm said revs came in at the lower-end of guidance with earnings beating on better OpEx control. Jefferies noted, "Excluding USD10mn from Weibo ads, portal ads revenue grew just 1.5% YoY in 2Q12, due to weak macro environment and loss of market share in key verticals, such as auto, in line with our preview note published in July."

For SINA's Weibo, Jefferies commented that "Weibo ads are offsetting weakness in portal ads, to a certain extent. However, enterprise product delays are pushing back enterprise account development: 200K enterprise accounts in 1H12 vs. 1mn YE12 target." The firm thinks fee-based revs from enterprise and revenue-share with app developers will only begin to materialize in the latter-half of 2013.

Shares of SINA are up 4.7 percent ahead of the bell Thursday.

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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