Brean Murray Carret Cuts Price Target on SINA (SINA) Due to Near-Term Outlook
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Price: $43.26 --0%
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
11 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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Brean Murray Carret & Co. is reaffirm its Buy rating on shares of SINA Corporation (NASDAQ: SINA), but is reducing its price target from $132 to $92.
While the company's Q4 results were relatively inline with expectations, the firm notes the weak Q1 guidance reflects limited visibility and a weak brand outlook in auto and ecommerce sectors. Due to the company's plan to continue investing in Weibo, earnings will total a loss in Q1.
The $160 million investment into Weibo over 2012 will primarily be focused on infrastructure build out and personnel.
An analyst at Brean Murray Carret comments, "In the longer term, we are positive on the huge growth potential of the social network platform in China and view SINA Weibo as having the potential to become a major player. In the near term, we are encouraged by the monetization timetable confirmed by management."
For Q1 and FY12, the firm cut its EPS estimates from $0.12 and $1.20 to ($0.25) and $0.62. Brean Murray Carret is forecasting EPS of $1.32 for FY13.
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 $62.95 yesterday.
While the company's Q4 results were relatively inline with expectations, the firm notes the weak Q1 guidance reflects limited visibility and a weak brand outlook in auto and ecommerce sectors. Due to the company's plan to continue investing in Weibo, earnings will total a loss in Q1.
The $160 million investment into Weibo over 2012 will primarily be focused on infrastructure build out and personnel.
An analyst at Brean Murray Carret comments, "In the longer term, we are positive on the huge growth potential of the social network platform in China and view SINA Weibo as having the potential to become a major player. In the near term, we are encouraged by the monetization timetable confirmed by management."
For Q1 and FY12, the firm cut its EPS estimates from $0.12 and $1.20 to ($0.25) and $0.62. Brean Murray Carret is forecasting EPS of $1.32 for FY13.
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 $62.95 yesterday.
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