UPDATE: Deutsche Bank Raises PT on Sohu.com Following Announcement of Tencent Investment in Sogou
In a report published Tuesday, Deutsche Bank analyst Vivian Hao reiterated a Hold rating on Sohu.com (NASDAQ: SOHU), and raised the price target from $54.00 to $74.00.
In the report, Deutsche Bank noted, “Sohu has announced that Tencent will acquire up to 40% equity interest in its search subsidiary, Sogou, while Sohu will retain its controlling shareholder status and voting rights in Sogou. We expect 1) Sogou, consolidated with Tencent's search arm Soso, to experience reaccelerated traffic growth and improving market presence in both PC and mobile, and to gain further market share against BIDU and QIHU, 2) enhanced competitive advantage for other Sogou portfolio products, thanks to traffic from Tencent, and 3) a special cash dividend from the pro-rata cash injection to Sohu. Hold on balanced risk/reward.”
Sohu.com closed on Monday at $69.61.
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