Shares of Chinese Internet companies mostly rose Thursday, with Sina Corp. leading the sector after the company said its first-quarter profit surged and issued second-quarter revenue guidance above analysts' expectations.
The Shanghai-based Internet portal operator and mobile value-added services company's shares rose $3.25, or 6.1 percent, to $56.40. In the past year, the stock has traded between $31.53 and $59.27.
Kaufman Bros. analyst Jason Avilio and Citi Investment Research analyst Catherine Leung upgraded the stock to "Buy" and increased their target prices.
Sina's first-quarter advertising revenue growth rate was much better than he expected, and its outlook for 55 percent to 58 percent advertising revenue growth is "even more impressive," Avilio said. He boosted his price target to $78 from $44.50.
"Olympic noise aside, the market presents an enormous opportunity, and Sina's position as the premier provider of content and Internet services in China places it in an extraordinary position for long-term growth and further price appreciation," he said.
Shares of Beijing-based competitor Sohu.com Inc. rose $2.95, or 3.7 percent, to $83.25.
Meanwhile, American Depositary Shares of Internet travel site operator Ctrip.com International Ltd. fell $5.37, or 8.5 percent, to $57.96.
Late Wednesday, Ctrip said its first-quarter profit climbed as sales of airline tickets rose, but the Beijing-based company also lowered its second-quarter revenue outlook in the wake of the earthquake that struck China Monday.
Susquehanna Financial Group analyst Chunming Zhao downgraded the stock to "Neutral" from "Positive," saying the shares have approached his $65 target price and he sees a lack of positive catalysts in the medium term.
Zhao said that while the company's first-quarter results beat estimates, they showed signs of slowing hotel revenue growth year over year and plane ticket growth slowed a bit from the prior quarter.
ADS of Ctrip competitor eLong Inc., which is also based in Beijing, rose 7 cents to $9.33.
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