UPDATE: Macquarie Raises on Qihoo 360 Technology as Search and Mobile Drives Upside

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 (15% of total revenue +87% QoQ in our estimates) and mobile (13% of total revenue +67% QoQ in our estimates). Following results, we raise FY14E EPS by 7% and FY15E EPS by 13% and roll forward to FY15 as valuation base. Our new TP is $118 (based on 30x FY15E EPS) up from $90 (based on 40x FY14E EPS) previously. Reiterate Outperform.”

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