In a report published Wednesday, Barclays Capital analyst Alicia Yap initiated coverage on Qihoo 360 Technology Co. QIHU with an Overweight rating and $38.00 price target.
In the report, Yap noted, “Following the release of its search engine (Aug 2012) and the announced partnership with Google (Jan 2013), Qihoo's share price has re-rated. We expect further catalysts to come from: 1) a gradual ramp-up of its sales network through both expanded direct sales and the build-up of agency channels, leading to further growth in search revenue; 2) mobile Internet opportunities, via its rising penetration rate in mobile security and potential success of its app store strategy; and 3) non-GAAP margins expanding to the targeted normalised rate of 40%. We initiate coverage with an Overweight rating and US$38 PT, based on 20x 2014E non-GAAP EAPDS of US$1.88, which implies 0.26x PEG to a two-year (2013-15E) earnings CAGR of 77%. Top picks within our China Internet universe are Tencent, NetEase and Youku(all rated OW).”
Qihoo 360 Technology Co. closed on Tuesday at $30.44.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in