Piper Jaffray ups its target for Chinese internet-portal Sina Corp. (SINA).
Analyst Safa Rashtchy says Shanda's announcement that it bought a 19.5% stake in Sina sets new profile for Sina -- one that's dominated by its brand name and a major position as a media company in China, rather than its unstable wireless business.
He says Shanda has signaled to markets it finds Sina's current valuation too low. He notes potential cooperation that a new equity stake may bring would combine two of the strongest names in China, and could give Sina access to Shanda's strong user relationship and know-how.
The company raises Sina's $22 target to $31. It maintains market perform.