Deutsche Bank Upgrades Sina Corp (SINA) to Hold; Increasing Chance of Focus Media (FMCN) Deal Failing

June 25, 2009 9:54 AM EDT

Deutsche Bank upgrades Sina Corp (Nasdaq: SINA) from Sell to Hold. Price target $31.

Deutsche analyst says, "We upgrade Sina to HOLD as we expect Sina to benefit from continued improvement in the housing mkt and shift of automaker marketing budget from offline to online. Our recent discussion with mgmt suggests that 2Q trends have stabilized and are inline with guidance. Our channel checks suggest that China housing mkt has seen continuous rebound since Jan 09. Moreover, recently announced RMB4bn additional govt subsidy to scrap old vehicles could encourage automakers to allocate marketing budget to the Internet.

"We believe the likelihood of Focus Media (Nasdaq: FMCN) deal failing to eventuate is increasing. We monitor the wires for a Sina 6K filing suggesting a cessation in the proposed transaction. As such we return the model Sina to a standalone basis. However, we would not be surprised if other merger talks arise, either as acquiror or acquiree."

To see more analyst ratings on SINA Click Here.

SINA Corporation (SINA) is an online media company and value-added information services provider in the People’s Republic of China and for Chinese communities worldwide.

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