Summit Research Starts Qihoo 360 Technology (QIHU) at Buy

Summit Research initiates coverage on Qihoo 360 Technology (NYSE: QIHU) with a Buy rating and a price target of $71.00.

Analyst Henry Guo commented, "We are initiating coverage on Qihoo 360 (QIHU), the leading online and mobile company in China. While the company’s 1Q15 top-line guidance is weak, we are optimistic on 2H15, as we see multiple potential positive catalysts, including (1) further desktop search monetization ramp-up; (2) increasing medical/pharmaceutical search contribution; (3) mobile search monetization traction; and (4) enterprise security revenue. While investments likely pressure profitability near term, we believe QIHU’s investment is necessary in this competitive market, and the stock is attractively valued at 12.7x our 16E EPS on long-term earnings growth of 30% Y/Y. We are initiating coverage on QIHU with a BUY rating and PT of $71 (15x our 16E EPS)."

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 $59.04 yesterday.

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