Goldman Sachs publishes its investment report today to maintain the "neutral" rating of Qihoo 360 stocks

Summary: View the latest quotes Beijing time August 28 Evening News, Goldman Sachs today issued an investment report to maintain the Qihoo 360 equity (Nyse:qihu) Neutral rating, while maintaining the 72 dollar target share price unchanged. The following is a summary of the content of the report: events: Qihoo today

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Beijing time August 28 Evening News, Goldman Sachs today issued an investment report to maintain the Qihoo 360 shares (Nyse:qihu) "neutral" rating, while maintaining a 72 dollar target share price unchanged.

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

Event：

Qihoo announced today that it plans to issue a 550 million-dollar premium convertible note, which expires on September 15, 2018. From September 20, 2016 onwards, the holder of the bill may, under certain circumstances, be able to cash the notes purchased, and may require the company to repurchase the instruments it holds. The conversion rate and other terms of the bill have not yet been finalized and will be determined at the time of issue pricing.

Analysis：

We expect that this release will result in a dilution of 4% to 6% per cent of the odd tigers diluted earnings. Qihoo said the proceeds from the bill would be used for general business purposes. We believe that the odd tiger use this part of the cash to strengthen the core strategic business, such as mobile games and search.

Referring to Ctrip's 2012 years of experience, we think Qihoo will benefit from: 1 lower financing costs. Convertible bills can provide competitive interest rates, a bond issue requires a relatively high interest rate, depending on the credit rating; 2. A little convertible function is activated, the issuer does not need to repay the principal after expiration, 3 the dilution effect of the convertible bill on the diluted earnings of each share is less than that of the stock issue.

Valuation: We continue to maintain the "neutral" rating of Qihoo 360 shares while maintaining a 72 dollar target share price unchanged.