SINA Corp. (SINA)

SINA Corp. (SINA - Analyst Report) is a leading provider of online media and value-added information services to the global Chinese community. The company posted a year-over-year increase in revenue, but results were below our estimates. SINA provided encouraging Q2 guidance.

However, economic growth in the country has continued to slow during to the global downturn. The company is also facing severe competition in its mobile business, though China's Internet penetration has surpassed the world average, which is expected to have a positive impact on the company's business.

We believe the SINA's business will continue on the strength of solid fundamentals and it will emerge as a strong company when the recession ends. We maintain our Buy rating on the stock but increase our six-month price target to $38.00.