Will Sina Stock Rise in 2017?



Sina stock fell 21.1% in December 2016

China-based (FXI) online media company Sina (SINA) fell 21.1% in December 2016. However, the company’s stock rose 31% in 2016. Last week, the firm announced its quarterly results and reported revenue of $272.3 million compared to analyst estimates of $265.3 million. Earnings per share (or EPS) were also significantly higher than analyst estimates of $0.35 at $0.56.

Sina reported a net margin of 9.0%. Revenue rose 21.5% YoY (year-over -year), whereas the earnings per share also rose significantly from $0.39 in the prior-year period.

Article continues below advertisement

How do analysts view Sina?

Sina was recently upgraded by HSBC. Analysts at HSBC had stated in early December that Sina is currently undervalued and that they foresee a potential upside of 56% for the company’s stock price, primarily driven by the performance of subsidiary Weibo (WB). Weibo is China’s version of Twitter (TWTR), and its stock price rose over 110% in 2016.

Of the 18 analysts covering Sina, 15 have issued “buy” recommendations and three have issued “hold” recommendations on the stock. The analyst stock price target for Sina is $87.84 with a median target estimate of $86. This means that Sina is trading at a discount of 41% to its median analyst price target.


More From Market Realist