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Brean Sharply Boosts Sina's Price Target From $65 To $100

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Brean Sharply Boosts Sina's Price Target From $65 To $100

Brean Capital has sharply raised the target price of SINA Corp (NASDAQ: SINA) to $100 from $65, citing the substantial valuation gap between Sina and WB (its largest asset).

"We believe the valuation gap between the two companies creates attractive opportunities for both investors as well as for potential strategic buyers who might have interest in taking over WB," analyst Fawne Jiang wrote in a note.

Jiang pointed out that WB has continued to show strong user engagement and traffic growth and recorded 318 million mobile app MAU as of July 2016, according to QuestMobile.

The analyst, who has a Buy rating on the stock, also highlighted the company's effective ad monetization model and potential monetization opportunities from the launch of video and live broadcasting.

Related Link: Monetization Of Weibo A Tailwind For Sina

"We are positive on SINA shares and believe that from an asset perspective, the company is undervalued, factoring SINA's majority ownership in WB, its large cash balance (~$1.1 billion net cash), and its investment in multiple valuable assets," Jiang continued.

Shares of Sina closed Tuesday's regular trading session at $73.96. The new $100 price target represents a potential upside of 35 percent.

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Latest Ratings for SINA

DateFirmActionFromTo
Aug 2019Initiates Coverage OnHold
May 2019UpgradesNeutralBuy
May 2019DowngradesBuyHold

View More Analyst Ratings for SINA
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