Morgan Stanley: Qihoo shares will grow in the next 60 days

360, the Nyse:qihu, is expected to grow in the next 60 days, when Morgan Stanley released its investment report today, the evening News of Beijing time October 28.

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

We believe that Qihoo's share price will rise in the next 60 days.

The short-term valuations are attractive mainly because of the recent sell-off by investors. Over the past three months, Qihoo's share price has fallen by more than 30%, mainly because of the unclear movement strategy.

But we believe that Qihoo's PC search commercialization will reach a point where the number of customers will reach 100,000. This will push up Qihoo's advertising bid, boosting key-word prices (currently only 25% of Baidu).

In addition, after the second quarter of the game revenue downturn, we believe that the second half of the rebound, mainly thanks to the introduction of new mobile games.

Qihoo expects profit margins to rise in the third and fourth quarters, driven by the commercialization of search and by a reduction in overseas marketing spending. (Li Ming)