Brean Capital maintains its Buy rating on SINA Corp
The ad revenue of
“We continued to view Weibo as a key beneficiary of China’s online advertising market particularly in mobile, social and video,” analyst Fawne Jiang wrote in a note.
Jiang sees continued improvement in user engagement for Weibo on enriched content and multimedia offerings. The analyst also expects the development of KOL economy could further unlock Weibo’s monetization potential down the road.
A Look Forward
Looking ahead, Weibo’s fourth-quarter revenue guidance was $205 million–$210 million, exceeding consensus expectations of $197 million.
Moreover, Jiang anticipates further improvements to Sina’s margin profile due to operating leverage from Weibo and cost controls from portal.
“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, and its investment in multiple valuable assets,” Jiang added.
Shares of Sina closed Monday’s trading at $67.29. In the pre-market hours Tuesday, they rose 2 percent to $68.70, while Jiang has a
|Sep 2016||Brean Capital||Maintains||Buy|
|Aug 2016||JP Morgan||Assumes||Overweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.