Sina Corp. shares climbed Monday as an analyst predicted a strong first-quarter report and second-quarter guidance from the Chinese Internet portal operator, which is scheduled to issue its results on Wednesday.
American Depositary Shares of Shanghai-based Sina rose $3.05, or 6.4 percent, to $51.05. In the past year, the stock has traded between $31.53 and $59.27.
In a client note, Goldman Sachs analyst Leah Hao reiterated her "Buy" rating for the stock.
"We expect Sina to report meaningful upside to our 1Q estimates and to provide stronger-than-expected 2Q guidance, driven by robust growth in branded advertising and healthy rebound in (wireless value-added services)," she wrote.
The analyst estimates first-quarter adjusted earnings of 25 cents per share on revenue of $67.2 million. Analysts polled by Thomson Financial, whose estimates generally exclude special items, expect a profit of 27 cents per share on $67.4 million in revenue.
Hao, who holds a $50 price target for Sina shares, thinks Sina's "strong business trends" will hold up in the coming quarters due to several factors. These include its strong lead in premium content offerings, strength in the second and third quarters related to the Beijing Olympics and a secular shift in advertising budgets to online to help post-Olympics growth, she said.
Hao also believes Sina will outgrow rival Sohu.com Inc. this year and beyond, citing Sohu's "tepid results" in branded advertising in the first quarter.
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