UPDATE: Goldman Sachs Initiates Coverage on Qihoo 360 Technology Co. Ltd. with Neutral Rating, $66 PT on Good Business Model, High Barriers to Entry

In a report published Tuesday, Goldman Sachs analyst Fei Fang initiated coverage on

with a Neutral rating and $66.00 price target. In the report, Goldman Sachs noted, “We initiate coverage of Qihoo with a Neutral rating and a 12-m target price of $66. Qihoo has a unique business model in the global context. Through its free market-leading security software, Qihoo has established its brand as a promise of a safe and convenient internet experience. The company leverages this brand image, and creates a portfolio of popular web services that generate large user traffic on a recurring basis. Qihoo then sells the traffic to advertisers and game publishers. We believe the business model has high barriers to entry, given that Qihoo's interconnected web services cross-promote each other, leading to networking effects.” Qihoo 360 Technology Co. Ltd. closed on Monday at $69.44.