JG Capital today released a study to maintain Qihoo 360 's overweight rating

Summary: Check the latest quotes Beijing time March 18 Morning news, investment company JG Capital released a study today, the Qihoo 360 (NYSE:QIHU) stock rating maintained in overweight (overweight) unchanged, the target price of 135 U.S. dollars. The following is a summary of the report: we

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Beijing time March 18 Morning news, investment company JG Capital released a study today, the 360 (NYSE:QIHU) stock rating maintained in "overweight" (overweight) unchanged, the target price of 135 U.S. dollars.

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

We maintain the "overweight" rating of Qihoo 360 unchanged, with a target price of 135 dollars

-Positive Investment Theme:

(1) Strong brand awareness and a large user base for Qihoo 360 long-term growth has laid a good foundation;

(2) Qihoo 360 's advertising business should continue to be strong because it is expected that the Chinese online advertising market will continue to achieve long-term growth. In addition, China's e-commerce companies in the competition between the situation intensified, to Qihoo 360来 said also bodes well for the future, because E-commerce advertisers are Qihoo 360 important advertisers;

(3) We continue to believe that the future of Qihoo 360 's personal launch page (PSP) advertising business will continue to be strong, the impetus from the continued to performance-based pricing and click-Pricing model changes;

(4) Qihoo 360 's 360 mobile phone assistants dominate China's Android application distribution market, which bodes well for its long-term mobile commercialization, especially in the area of mobile gaming and the commercialization of mobile advertising.

(5) In our opinion, the further growth of the search traffic market share should push up the share price of Qihoo 360. Qihoo 360 already occupies more than 20% per cent of the search traffic market, and its management is expected to have 30% per cent of the market by the end of 2014;

(6) The commercialization of desktop Search has shown its adhesion, and we expect this encouraging sign to continue for 2014 years.

-Potential risks:

(1) Qihoo 360 lags behind Baidu in Mobile key search market (NASDAQ:BIDU);

(2) It is expected that Qihoo 360 will continue to face margin pressure in the near future because of its investment in new growth drivers such as search and move.

-Performance Expectations:

We expect the 2014 and 2015 Qihoo 360 revenues to grow by 78% and 50% respectively year-on-year. We estimate that 2014 Qihoo 360 operating margin (not in accordance with U.S. General Accounting standards) for 33%, 2015 for 36%. We also expect Qihoo 360 to have revenue of $228 million in the first quarter of 2014, and not 0.35 US dollars per share of US GAAP.

-Stock rating and target price:

We still believe in the growth momentum of Qihoo 360 's business and believe that the company has a wide range of drivers in the near term, including search market share growth, mobile gaming and mobile application distribution, traffic commercialization, and the continued performance of the personal launch page business.

We maintain the "overweight" rating of Qihoo 360 unchanged, with a target price of 135 dollars. The target price is based on the expectation of earnings per share of the 2015 Qihoo 360 and the 32 times-fold P/e ratio.