Deutsche Bank Downgrades SINA Corporation (SINA) to Hold on Valuation

Deutsche Bank downgraded SINA Corporation (NASDAQ: SINA) from Buy to Hold with a price target of $50.00 (from $47.00). The change is tied to valuation.

"An investment of $456m by the CEO (increasing his holding from 2.5% to 16%) is a major statement of intent and commitment but does not imply further upside. After a relative gain of 45% against Nasdaq (+1%) since 2Q15, we downgrade the shares to Hold due to little visibility on the legacy portal business transition. We also caution against expectations of a full privatization bid based on our analysis of the legal and domestic market hurdles, in spite of the attractions of the large cash/investment balance of $24/share (FY15E)," said analyst Vivian Hao.

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 $45.08 yesterday.

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