JG Capital released a research report today to give Sina an overweight rating

Summary: Check the latest quotes Beijing time March 18 Morning news, investment company JG Capital released a study today, to give Sina (Nasdaq:sina) shares to overweight (overweight) rating, the target price of 110 U.S. dollars. The following is a summary of the report: we give Sina shares

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Beijing time March 18 Morning news, investment company JG Capital released a research report today, to give Sina (Nasdaq:sina) shares to "overweight" (overweight) rating, the target price of 110 U.S. dollars.

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

We give Sina stock "overweight" rating, the target price 110 dollars

-Positive Investment Theme:

(1) We are optimistic about the strategic value of Sina Weibo in China's internet market;

(2) The partnership with Alibaba Group and revenue guarantee will help to commercialize the microblogging service. We expect the 2014 microblogging service to come from a partnership with Alibaba Group advertising revenue will reach about 120 million dollars;

(3) We anticipate that Sina Weibo will continue to face stringent content control policies, but does not regard it as an existing risk;

(4) We believe that the long-term impact of micro-credit is likely to be limited;

(5) From the current valuation, Sina shares will be able to provide a favorable risk rate of return. Our conservative valuation of Sina's legacy business (plus cash and short-term investments) is $55 per share, and it is thought to provide a valuation support for Sina shares;

(6) Our valuation of Sina Weibo is 6.5 billion dollars, and that Weibo's valuation contribution to Sina's shares is about $55 trillion, a valuation that takes into account the potential dilution of the Alibaba Group's increase in its shareholding to 30% after its IPO on Sina Weibo;

-Performance Expectations:

We estimate that Sina's total revenue in 2014 was $862 million (up 33%), and 1.09 billion in 2015 (up 26%). We expect Sina's 2014-year advertising revenue to be 713 million U.S. dollars (up 35% year-on-year), with a non advertising revenue of 149 million dollars (up 25% per cent). In particular, we forecast Sina microblogging service 2014 years of advertising revenue of 247 million U.S. dollars, an increase of 66%.

-Stock rating and target price:

We continue to believe that, both in the near term and in the long run, the partnership between Sina and Alibaba, the likely increase in user participation, and the increased commercialization of Sina's microblogging platform should help Sina expand its business beyond traditional display advertising and show strong revenue and profitability growth. We think that from the current share price of 64.5 dollars, Sina stock is attractive, its risk return is very favorable.

We give Sina stock "overweight" rating, the target price of 110 dollars.