Goldman Sachs publishes investment report to maintain "neutral" rating for Sohu stock

Summary: View the latest quotes Beijing time July 29 Evening News, Goldman Sachs today issued an investment report to maintain the Sohu stock (Nasdaq:sohu) Neutral rating, the target price from 80 U.S. dollars to reduce to 56 U.S. dollars. The following is a summary of the report: Sohu to see the latest market in the second quarter of 2014

Beijing Time July 29 Evening News, Goldman Sachs released its investment report today, maintaining the Sohu stock (Nasdaq:sohu) "neutral" rating, the target share price from 80 U.S. dollars to 56 dollars.

The following is a summary of the contents of the report:

Sohu's second-quarter results in fiscal year 2014 and third-quarter earnings were expected to be lower than Wall Street forecasts. Revenue for the second quarter was $400 million, up 18% from a year earlier, 2% per cent lower than the average estimate of analysts surveyed by Bloomberg. Based on non-US general accounting standards, each share is diluted at $0.88 trillion, below the average expected by Bloomberg survey analysts. Sohu expects revenue from the third quarter to reach $427 million trillion to $442 million trillion, below the median estimate of analysts surveyed by Bloomberg.

Analysis：

Sohu subsidiary Sogou's performance is the focus. Through cooperation with Tencent, Sogou recently published a search engine in the micro-letter official account. Sogou Pinyin on mobile devices in the monthly number of active users reached 200 million, a record high.

Overall, the second quarter Sogou revenue more than 91 million U.S. dollars, an increase of 82%, the chain growth of 30%, mainly due to the increase in advertising volume of 23% year-on-year, average revenue per customer growth of 63%.

Mobile search traffic growth of 30% Quarter-on-quarter, the revenue chain growth of 50%. In the second quarter, Sogou operating profit reached 9 million U.S. dollars, and the first quarter of 500,000 U.S. dollars. Sohu Management estimates that Sogou third quarter revenue will be more than 100 million U.S. dollars.

As for other businesses, video revenues grew 85% year-on-year, and mobile video traffic grew by 33%. Mobile advertising revenue doubled.

We will be Sohu 2014 to 2016 fiscal year diluted earnings per share reduction of 0.5 U.S. dollars to 2 U.S. dollars, to reflect the downturn in the revenue of the tour. To this end, we will Sohu in the next 18 months, the target price from 80 U.S. dollars to reduce to 56 U.S. dollars.

We continue to maintain the "neutral" rating of the Sohu stock, which will reduce the target share price from 80 US dollars to $56. (Li Ming)