UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Sina Corp. Following Potential Alibaba Alliance

In a report published Friday, Deutsche Bank analyst Alex Yao reiterated a Buy rating on Sina Corp.

, and raised the price target from $63.30 to $71.30. In the report, Yao noted, “Expecting long-term monetization potential from Ali alliance. Although the infrastructure connection between Alibaba and Sina Weibo is still ongoing, we believe Sina Weibo will benefit from the alliance in the long term, due to 1) USD380m advertising commitment from Ali, 2) incremental merchant advertisers, and 3) revenue sharing from social e-commerce attempts. Maintaining Buy and raising TP to USD71.3 on cash from Alibaba investment and potential synergies. We value Weibo at USD3.2b. SOTP-based valuation comprised of USD17.1 from portal on 14x 2013E PE, USD15.6 from net cash, USD33.8 from Weibo on 30x 2014E PE and USD4.7 for other assets.” Sina Corp. closed on Thursday at $58.81.