UPDATE: Maxim Group Upgrades SINA Corporation to Buy, Names $58 PT on Increasing Alibaba Benefit

Loading...
Loading...
In a report published Thursday, Maxim Group analyst Echo He upgraded the rating on
SINA CorporationSINA
from Hold to Buy, and named a $58.00 price target. In the report, Maxim Group noted, “Weibo may regain market share as an important collaborator of Alibaba (private). Starting in August, Alibaba blocked Tencent's (0700-HK - HK$360.20 - NR) WeChat from its platforms, mainly Taobao.com and Tmall.com. As a result, we believe Alibaba's online shoppers are not able to directly access WeChat to advertise shopping information and WeChat users are not able to directly access Alibaba with the same login. Meanwhile, Alibaba started to allow SINA's Weibo users to shop on its e-commerce platforms (Alibaba and Weibo may share back-stage user support). Given that WeChat has been the top competitor of Weibo— the fast growing WeChat popularity have negatively affected Weibo's user activities in the past few quarters, Alibaba's business preference will likely help Weibo recoup market share, starting from online shopping.” SINA Corporation closed on Wednesday at $73.60.
Posted In: Analyst ColorUpgradesAnalyst RatingsEcho HeMaxim Group
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...