Actionable news
All posts from Actionable news
Actionable news in SINA: Sina Corporation,

Why Sina Has 56% Upside

HSBC maintained its Buy on the Chinese internet company and raised its target price to USD105 a share (from USD97), implying 56% upside.

Looking to maximize shareholder value: We think SINA continues to be attractive on a sum-of-the-parts basis as its 50% equity stake in Weibo (WB, USD45.61, Buy) is worth USD65 a share at market value, or 96% of its current share price.

Management issued an in-kind stock dividend for Weibo shares to SINA shareholders in August. Further, it disposed of its entire stake in Today’s Headlines, a top news app in China, recognizing a USD134 million gain. We point out that SINA had USD2.2 billion of cash as of September (USD480 million attributable to Weibo). It currently has a USD500m buyback authorization. On its earnings call, the CEO said he is open to further unlocking value in the company. Separately, he said Alibaba remains a “very very important strategic partner” for Weibo, working closely on sales & marketing, advertising, data sharing and payment. Alibaba currently owns 31% of Weibo and we...