Weibo Real-Name Selling in SINA (SINA) is Overdone, Time to Buy - JPMorgan
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Price: $43.26 --0%
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Shares of Sina Corporation (Nasdaq: SINA) are on the move early Thursday after JPMorgan raised their rating on the stock saying the recent share price decline is overdone.
JPMorgan's Dick Wei upgraded SINA from Neutral to Overweight, while lowering his price target from $89 to $79. With shares of SINA down sharply following the new real-name registration policy for micro-blog Weibo, the share price now looks unjustified Wei said.
Weibo's user base was 250 million in November 11, up from 200 million in August - or 16 million monthly net-adds. Wei expects this to slow to 10-15 million per month going forward. However, daily messages are increasing at a fast pace - from 75 million in Q211 to 86 milion in Q311. Sina is still focused on user stickiness, versus user growth or monetization at this point Wei said.
Sina maintains a target of some monitzation in Q212, but Wei said meaningful Weibo earnings won't come until 2013.
The new $79 price target implies 72.4x/41.6x 12E/13E diluted adjusted PE. They value the parts as followed: portal (US$34), WVAS (US$3), Weibo (US$28), CRIC & cash (US$14).
The new price target suggests 33 percent upside from current levels of $59.60.
JPMorgan's Dick Wei upgraded SINA from Neutral to Overweight, while lowering his price target from $89 to $79. With shares of SINA down sharply following the new real-name registration policy for micro-blog Weibo, the share price now looks unjustified Wei said.
Weibo's user base was 250 million in November 11, up from 200 million in August - or 16 million monthly net-adds. Wei expects this to slow to 10-15 million per month going forward. However, daily messages are increasing at a fast pace - from 75 million in Q211 to 86 milion in Q311. Sina is still focused on user stickiness, versus user growth or monetization at this point Wei said.
Sina maintains a target of some monitzation in Q212, but Wei said meaningful Weibo earnings won't come until 2013.
The new $79 price target implies 72.4x/41.6x 12E/13E diluted adjusted PE. They value the parts as followed: portal (US$34), WVAS (US$3), Weibo (US$28), CRIC & cash (US$14).
The new price target suggests 33 percent upside from current levels of $59.60.
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