Munster Sees Facebook Valuation Providing Floor on SINA (SINA) Shares, Says Overweight Into Filing

SINA (Nasdaq: SINA) shares are outperforming sharply Wednesday as traders may be buying the stock as a way to play Facebook's highly-anticipated IPO, expected out sometime this afternoon. The stock last traded at $73.70, up nearly 5 percent from Tuesday's closing price.

Piper Jaffray's Gene Munster earlier pointed to just such a trend. The analyst said investors should be overweight SINA shares into Facebook's IPO filing as the social-media giant entering the public market could be a "continued" positive near-term development for SINA. Munster believes Facebook's valuation could provide a potential floor to SINA shares somewhere in the low $60 range.

Sina currently operates Weibo, a Chinese microblogging website similar to Twitter.

Piper Jaffray maintains an Overweight rating and $95 price target on SINA into the expected Facebook filing. Munster's target implies possible price appreciation of about 29 percent from where the stock is currently trading.

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