J.P. Morgan gives Qihoo 360 a 94 dollar rating target

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Beijing time August 30 afternoon news, JPMorgan released its research report today, the first time to Nyse:qihu 360 shares in the study, to give the unit "overweight" (overweight) rating, the target price set at 94 U.S. dollars.

The following is a summary of the report:

Give an Overweight rating

Qihoo 360 has built a powerful traffic platform that covers both the PC and mobile terminals. The company is shifting its revenue model to businesses with further growth potential, such as Cpc/cps advertising, keyword search and game distribution, which can make better use of its growing traffic. We believe that the development of China's internet economy, which covers the PC end and mobile end, will further boost the revenue growth of Qihoo 360 in the coming years.

Multiple traffic platforms

Qihoo 360 Gets a lot of traffic from a large number of killer products that cover both the PC side and the mobile end: Internet security software, browsers and navigation sites, and app stores, most of which are in the dominant market place. We believe that the huge number of users has laid a solid foundation for the future commercialization of these products.

Search Business Revenue forecasts

We estimate that the market share of Qihoo 360 's search business will reach 20% in 2014, with a pay-for-click Share rising to 8% and revenues thus reaching 210 million dollars. If Qihoo 360, through organic growth or mergers and acquisitions, has ultimately surpassed our forecasts in the Chinese search market, we think that the company's 2014 revenue will reach $311 million, based on a 360 search market share of 25% and a pay-for-click share of 13%.

Benefit from the growth of the Hand tour market

We estimate that by revenue, Qihoo 360 's share of the Chinese market will reach 10% in 2014, with the company's share in the 2012 Web game release market. We also believe that Qihoo 360 will benefit from the growth of other parts of the mobile internet economy, given its mature content-publishing capabilities.

Valuation

We gave the Qihoo 360 stock "overweight" (overweight) rating, with a target stock price of $94.