UPDATE: Citigroup Raises PT on Qihoo 360 Technology Following 3Q Earnings Beat

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. At US$115 (from US$87), our DCF-based TP equates to a PEG of 0.7x. Reiterate Buy.”

Qihoo 360 Technology Co. Ltd. closed on Monday at $78.40.