Qihoo 360 shares the target price from $80.40 to $95.30

Source: Internet
Author: User
Keywords Raise overweight
Tags .net market market share mobile net net profit search total revenue

Morgan Stanley today issued an investment report to maintain the "overweight" rating of Qihoo 360 (Nyse:qihu), raising its target share price from $80.40 to $95.30.

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

Qihoo's net profit rose 240% in the third quarter of the 2013 fiscal year, mainly thanks to growth in search and mobile-related revenue. Qihoo Search traffic market share reached 23%, beyond the odd tiger before the expected. Search commercialization has also made progress, but the share of the revenue is still hovering around 1%, meaning that there is a larger space for ascension.

Third-quarter results: Revenue of 188 million U.S. dollars, an increase of 120%, compared with the company's guiding expectations of the upper limit of 3%. Net profit of 44 million U.S. dollars, an increase of 240%, higher than we expected 30 million U.S. dollars, mainly because of operating leverage.

Positive factors: 1 We expect the search advertising revenue to increase by 85% to 28 million U.S. dollars, accounting for 15% of total revenue, and the previous quarter was 10%. 2 based on our calculations, mobile-related revenue contributed 13% to 14% of revenue, compared to 10% in the previous quarter. 3 Mobile Security Users, navigation page users, as well as click Traffic Rose 42% to 174% respectively. 4) Qihoo search revenue less than 2% of Baidu revenue, but the market share has reached more than 30% of Baidu. 4) Qihoo is expected to increase the total revenue in the fourth quarter to 10% to 11%, up 100% to 102% year-on-year.

Negative factors: The monthly number of active PC users for 465 million, only 5% year-on-year growth, and China's internet users, mainly because Qihoo's PC penetration rate has reached 94%.

Valuation: We continue to maintain the "overweight" rating of Qihoo 360, raising the target share price from $80.40 to $95.30.

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