UPDATE: Barclays Capital Reiterates Overweight Rating, Raises PT on SINA Corporation Following Solid 2Q13 Results

In a report published Tuesday, Barclays Capital analyst Alicia Yap reiterated an Overweight rating on SINA Corporation SINA, and raised the price target from $72.00 to $84.00. In the report, Barclays Capital noted, “We maintain our OW rating on Sina and adjust our SOTP-based price target up to US$84 (from US$72). It delivered a solid 2Q13 result thanks to stronger-than-expected brand ad revs growth which benefited from earlier-than-expected revs contribution from the partnership with Alibaba. Despite a high base from Olympic-related revs last year, Sina guided 3Q13 total brand ad revs to grow 25-27% y/y, accelerating from 17% y/y in 2Q13, mainly attributable to solid progress of Weibo ad revs and higher % contribution from Alibaba-related ad revs. While execution risks remain on: 1) balancing user experience; 2) effectiveness of Weibo ads; and 3) progress and ramp of Weibo-Taobao account integration, we believe the Alibaba-Weibo alliance will strategically benefit revs and earnings growth and position Weibo to capture the emerging growth opportunity in the social media/social commerce landscape.” SINA Corporation closed on Monday at $80.35.