Stifel Downgrades Qihoo but Remains Optimistic

In a report published Friday, Stifel analyst George Askew downgraded

from Buy to Hold. Qihoo reported third quarter 2013 result with revenue at $187.9 million, up 124%. Adjusted EBITDA was up 179% at $78 million. Qihoo beat consensus expectations across the board. Askew noted that he remains optimistic on Qihoo and future opportunity for the company. Stifel commented that shares "may be attractive to own during the search inflection point in 2H14." The analyst added that the company is the "undisputed leader in Internet security in China." The company is monetizing the search share and has the leading app store in China on 70% of smartphones. Stifel concluded, "We believe Qihoo management is highly credible and strategically brilliant. We look forward to being more constructive on the shares in the future." Qihoo closed at $86.60 on Friday and shares are currently trading down 8.41%.