Citigroup Comments on Solid 1Q Channel Checks for Qihoo

Citigroup has published a research report on Qihoo 360 Technology

commenting on solid 1Q channel checks for the company. In the report, Citigroup writes, "A number of channel checks into portals and content properties in China suggest that on a traffic basis, Qihoo's directory now drives a similar amount of traffic to or higher than that of Baidu's HAO123. We see this as a notable achievement given the company's standing start in this area less than two years ago. Further channel checks into online ad dynamics into Q1 suggest that while the broad display ad space (portal space) will likely come in inline with forecasts with measured guidance, we expect Qihoo to post a solid set of results with scope for a slight beat, despite the enforcement of legislation in China in Feb removing unlicensed online sales of lottery tickets (which contributed to a small part of QIHU's IVAS revenue)." Citigroup maintains its Buy rating and $39 price target on QIHU, which is currently trading up $0.08 from yesterday's $24.08 closing price.