Qihu upgraded by UBS. Here is the story:
Much has been made of Qihoo 360 Technology’s (QIHU) attempt to muscle in on Baidu’s (BIDU) search territory–and from all appearances, its going quite well.In research note, UBS highlighted that Qihoo’s efforts to make money off of search are going much better than the Swiss investment bank expected. The company began efforts to turn a profit in search last month using text ads, display ads and even “dynamic photo” advertisements.
UBS says it tested 100 carefully selected keywords and found that 10% of keywords had no ads, 33% had ads delivered by Google, and 57% had ads from Qihoo’s own system. And while the resulting ads could be sparse–sometimes just one or two–or irrelevant, UBS notes that it’s been just a few weeks since the program started and results should get better.
UBS forecasts search revenue of $52 million in 2013, up from $39 million, and $126 million in 2014, up from $107 million. As a result, UBS maintained its buy rating and raised its price target to $39, from $33.