Nomura Sees Opportunity to Accumulate Qihoo 360 (QIHU) Shares

Nomura Securities analyst Chao Wan reiterated a Buy rating and $97 price target on Qihoo 360 Technology (NYSE: QIHU), saying the strategic partnership with Coolpad Group offers long-term option value and an opportunity to accumulate the shares.

"We think the recent share price weakness is attributable to: 1) weak market sentiment; 2) delayed launch of healthcare ad and 3) expansion into handset/ hardware manufacturing causing uncertainty," Wang commented. "Trading at 16x 2015F P/E (EPS of USD3.8), we see this as an opportunity to accumulate the shares.

He added, "Launch of healthcare ad in 1Q15 is likely a short-term catalyst. Qihoo can also benefit from over-competition among vertical players. The hardware business offers limited downside risk but long-term option value."

For an analyst ratings summary and ratings history on Qihoo 360 Technology click here. For more ratings news on Qihoo 360 Technology click here.

Shares of Qihoo 360 Technology closed at $59.65 yesterday.

You May Also Be Interested In

• Moncler SpA (MONC:IM) (MONRY) PT Raised to EUR69 at RBC Capital
• Jet2 plc (JET2:LN) (DRTGF) PT Raised to GBP20 at RBC Capital
• Wabtec (WAB) PT Raised to $185 at KeyBanc