Jaffray to keep Sina's overweight rating up to 70 dollars

Jaffray Piper Jaffray, the US investment bank, released its investment report today to maintain the "overweight" rating of Sina (Nasdaq:sina), raising its target share price from $65 trillion to $70, Beijing time August 15 Evening News.

The following is a summary of the contents of the report:

We still believe that, based on current market capitalisation, the value of Sina's portal business and other investments is 0 (meaning that share prices are undervalued). Sina's overall valuation is clear, and we compare it to Yahoo and Alibaba (rolling information): Yahoo's valuations are largely influenced by its stake in Alibaba, and many investors overlook Yahoo's core business. As for the video license issue, we believe Sina can solve the problem. To this end, we continue to maintain the Sina stock "overweight" rating, the target share price from 65 U.S. dollars to 70 U.S. dollars.

Second-quarter results exceeded expectations: Sina's revenue was 184.4 million U.S. dollars in the second half of fiscal year 2014, up from Wall Street's expected $180.1 million trillion. Diluted earnings per share of $0.17 trillion, above Wall Street's expected $0.09 trillion. We believe this is mainly due to the strong performance of the advertising business during the microblog and World Cup.

Video License issue: Video License issue has not yet been resolved, but it should be noted that Sina can still publish some of the video content, such as sports video. Sina Management said that the advertising business affected by the video license issue is expected to rebound in the fourth quarter of this year.

Vertical opportunities: Sina has reiterated its opportunities in three vertical areas, such as finance, sports and automobiles. Sina is currently developing a number of automotive-related products and is scheduled to launch in the fourth quarter. Car vertical business accounted for the Sina portal advertising revenue 1/3. In addition to the three vertical opportunities listed above, Sina has also invested in other areas to find more business opportunities, such as online lottery. Sina has a successful experience in seeking organic growth, and Weibo is the best proof.

Valuation: We continue to maintain the "overweight" rating of Sina shares, raising the target share price from 65 US dollars to $70. (Li Ming)