Sina Corp. added to Goldman 'Conviction Buy' list
By
Associated Press
June 16, 2009
|
Shares of Sina Corp. rose sharply Tuesday morning after Goldman Sachs added the Chinese Internet portal operator to its "Conviction Buy" list, anticipating accelerated growth next year.
In a note, Goldman analyst Kathy Chen wrote that a recent slowdown in advertising revenue at the Shanghai-based company reflects the weakened economy and not a loss of Web traffic in key segments such as automotive, finance and real estate.
She also wrote that the company should see increased advertising revenue and growth in 2010.
Last week, Sina reported a 31 percent decrease in first-quarter earnings and lower-than-expected revenue as the sluggish economy dampens advertising spending.
Still, despite the results, Sina maintains its position as the "leading portal in China," Chen wrote.
She raised her 12-month price target to $38 from $31.
Shares increased $1.95, or 6.69 percent, to $31.10 in morning trading.
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