USB Piper Keeps 'Outperform' on Sina
USB Piper reiterated its outperform rating on Sina (SINA ).
Yahoo will provide auctions-based services in China. Analyst Safa Rashtchy says Sina will start tapping into the huge but nascent e-commerce and auction market. He thinks the Yahoo joint venture is likely to expand into other areas. He says with this move, Sina taps into the global brand value of Yahoo as well as Yahoo's technical expertise and operational strength in Asia (outside China).
Rashtchy thinks Yahoo will further strengthen its hold in Asia, and maybe repeat its partnership model success in Japan and Taiwan. He says this win-win situation could bring potential damage to eBay's Eachnet, which had been the only major player in the auction space. He has a $52 target.