Jefferies Target $35, Co. monetizes search and web games
Jefferies reiterated a Buy rating on Qihoo 360 Technology (NYSE: QIHU) with a price target of $35.00, which implies 60 percent upside from the current price.
The latest channel checks by analysts at Jefferies indicated web games business was gaining traffic and good progress in its newly launched performance based ads solution.
"We are modelling 10% search traffic PV market share in FY13, and expect to see Qihu expand its search PV share to 14% in FY14, after successful execution and efforts in optimizing search experience, develop 3rd party channels to attract more search traffic, and execute on developing local and vertical search content on Qihu," said analyst Cynthia Meng.
"Besides search, our latest channel checks on Qihu indicate web games business gaining strong traffic. Qihu is now widely considered as one of the most important open platforms for smaller web games developers to join," added Meng.