UPDATE: Jefferies Downgrades Qihoo 360 Technology to Hold on Slowing Profits, Valuation

Jefferies downgraded Qihoo 360 Technology QIHU from Buy to Hold and lowered the price target from $38.00 to $31.00. Jefferies commented, "4Q12 rev and earnings beat both Street and our est, 1Q13 rev guidance is above consensus. Expect large increase in marketing expenses in FY13. OP margindecline guided to bottom in 1Q13. For FY13, we revised down total FY13 revenues by 2.3%, and cut search revenueest. by 12% to USD100mn. Non-GAAP OP margin is cut by 6.8pcpt to 23.5% for FY13. Downgrade to Hold, cut PT by 18% to USD31 on slower profit growth and rich valuation." Qihoo 360 Technology closed at $34.82 on Tuesday.