So one ANALysts comes out and downgrades a stock which had a terrific earnings report because they did not raise their guidance enough to impress them. Utter BS! However, there is nothing to prevent them doing that so they can get rid of their shorts and go long. Once that is done, and with no one support the ridiculous downgrade, two other ANALysts steps in the next day and upgrade with PTs well above $110. Note also, the stock only went up 5.6% after falling close to 9% with the downgrade. So now Stiefel is making big bucks and you can expect QIHU to close the year above $100. For the retail investors that sold yesterday at a loss, I hope they are able to recoup on the run to $100 plus. Tough game to play and win.
In a report published Tuesday, Citigroup analyst Bin Liu reiterated a Buy rating on Qihoo 360 Technology Co. Ltd. (NYSE: QIHU), and raised the price target from $87.00 to $115.00.
In the report, Citigroup noted, "Qihoo's 3Q13 non-GAAP net profit of US$61.5m (up 154% yoy) beat Citi/Bloomberg consensus by 40%/30%. 3Q revenue of $188m (up 124% yoy) was 3% higher than Citi/consensus on solid ad revenues. Non-GAAP EBIT margin was 35.5%, 7ppt higher than Citi estimates. Midpoint of 4Q revenue guidance of US$206-208m is 2% higher than current consensus. We revise up our FY13E-15E earnings by 7-16% mainly on higher margin assumptions.
UPDATE: Macquarie Raises on Qihoo 360 Technology as Search and Mobile Drives Upside
Last update: 26/11/2013 11:07:21 am
In a report published Tuesday, Macquarie Capital analyst Jiong Shao reiterated an Outperform rating on Qihoo 360 Technology Co. Ltd. (NYSE: QIHU), and raised the price target from $90.00 to $118.00.
In the report, Macquarie Capital noted, "Qihoo reported strong Q3 results and provided better than expected Q4 guidance, despite some negative impact from 1x events. The strength in Q3 came from search
The ONLY reason that I can come up with for QIHU going down after beating earnings by a dime is that there must be a group of mutual fund managers that already "picked" BIDU as a company in the foreign internet sector that would thrive into the end of the year. If QIHU is acknowledged has ruffling the feathers of BIDU then BIDU should be going down below $150 and probably considerably lower than that. BIDU missed their EPS they last announced, but yet it has gone up from $150 into the $160's. QIHU knocks it out of the park with it's EPS and they get hammered. I'm still long this stock, but the only trade that sucker punched me worse than this was when I had many Apple calls in the $ the day before a January earnings release a few years ago and Steve Jobs announced that he had to step down (again) for health reasons. I guess as long as we do have our health everything else can be worked out. Happy Turkey Day to all...especially QIHU longs!
Until this week, I have never seen any of these firms claim that a company that raised its guidance, did not raise it enough to impress them. The stupidity of the statement confounds me. It would have been better to use a different lie then the one they used. In any event, I am hoping to regain what I lost by sticking with QIHU into its next earnings. I am confident that the stock will end the year near 100. I may be proven wrong, but IMHO this will be the case. Time will tell. Happy Thanksgiving to you and all too.