SINA Corp. (SINA) is one of the most well-known online brands in China. The company is a leading provider of online media and value-added information services to global Chinese community.
SINA continues to do well in its online brand advertising and is increasing the gap between itself and its closest competitors in the online brand ad market. Chinese Internet penetration has reached 20.0%, and it has accelerated over the past six months. With the recent turmoil in the global economic environment, we are maintaining our Buy rating.
The stock is currently trading at 12.4x our estimate for the next four quarter earnings per share, which is in line with the industry mean and higher than that of its closest Chinese competitors. The stock is also trading at 11.3x our estimate for fiscal 2009 earnings per share, which is lower than the industry mean. Using a P/E multiple of approximately 15.2x our fiscal year 2009 earnings per share estimate yields a target price of $35.00.
Read the full analyst report on SINA
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