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UPDATE: Citigroup Downgrades SINA Corp. to Sell, Lowers PT

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In a report published Friday, Citigroup downgraded its rating on SINA Corp. (NASDAQ: SINA) from Buy to Sell, and lowered its price target from $96.20 to $45.00.

Citigroup noted, “Weak guidance and portal mobile headwinds drive our significant forecast cuts. Mgt's strategy to differentiate the portal via local social content (leveraging enterprise Weibo subs & Weibo content) has substantial long-term potential but is unlikely to move the needle till 2014. In addition, we have moved from SOP to PE to reflect the integrated/inseparable nature of Weibo & the portal. Weibo's local content and enterprise subs will be key to the portal retaining growth in a market characterized by portal decline & integrating the portal's content allows Weibo to maintain a niche vs Tencent's social dominance. We hence believe that SOP incorrectly values the company, which should be looked at on an integrated PE basis. We put the stock on 33x 2014 at which point it will have a c.55% CAGR. This indicates a TP of USS45. Sell.”

SINA Corp. closed on Thursday at $53.10.

Latest Ratings for SINA

DateFirmActionFromTo
Jan 2015JP MorganMaintainsOverweight
Jan 2015Pacific CrestDowngradesOutperformSector Perform
Nov 2014Stifel NicolausDowngradesBuyHold

View More Analyst Ratings for SINA
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Downgrades Analyst Ratings

 

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