J.P. Morgan publishes a study today to maintain a 360 equity overweight rating

JPMorgan released its study today to maintain the "overweight" rating of Qihoo 360 (Nyse:qihu), raising its target share price from $98 to $165.

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

The strong financial results of fiscal year 2013 proved the commercial viability of Qihoo, and we believe that the Qihoo search and mobile commercialization will continue to boost revenue growth this year. At the same time, effective cost control and moderate spending will help Qihoo maintain its current profitability. To this end, we continue to maintain the Qihoo stock "overweight" rating, the target share price from 98 U.S. dollars to 165 dollars.

Strong fourth-quarter results: The fourth quarter, based on non-US general accounting standards, the odd tiger per share diluted earnings of 0.70 U.S. dollars, 73% higher than our expectations, 64% higher than Wall Street expectations, mainly thanks to lower than expected operating expenses, and exceed the expected revenue growth. In the quarter, Qihoo's revenue was 6% higher than our forecast, and operating profit was 8.9% higher than our forecast. Qihoo's median revenue forecast for the first quarter of fiscal 2014 was 4.6% higher than we had expected.

Mobile commercialization exceeded expectations: Despite intense market competition, the mobile commercialization of Qihoo is progressing well, thanks largely to rapid market growth and the outstanding executive ability of Qihoo's management.

Search drives revenue growth: We still believe that the current commercial level of Qihoo in search traffic is not high. The quarter, Qihoo revenue only Baidu revenue of 2.3%, but the flow market share more than 20%. We believe that Qihoo search revenue will continue to grow rapidly this year.

Valuation: We continue to maintain the "overweight" rating of Qihoo 360, raising the target share price from $98 to $165.