Why Qihuu 360 (QIHU) Is Gaining Today

NEW YORK (TheStreet) -- Qihoo 360 (QIHU) gained 4.6% to $84.80 Monday following an upgrade from analyst firm Stifel.

Stifel analyst George Askew upgraded the Chinese search company to "buy" from "hold," with a price target of $108. Qihoo currently handles 23% of Internet searches in China, but has less than 2% of search revenue. Askew believes Qihoo's search revenue will increase as it increases prices and sells ads to more marketers. He also notes the company will likely attract more top ad spenders and increase its share of Internet searches in the future.

UBS also has a positive outlook for Qihoo, giving the company a "buy" rating and a price target of $118.

Qihoo's biggest competitor, Chinese search company Baidu (BIDU), fell 2.8% to $174.64 Monday.

TheStreet Ratings team rates QIHOO 360 TECHNOLGY CO -ADR as a Hold with a ratings score of C. The team has this to say about its recommendation:

"We rate QIHOO 360 TECHNOLGY CO -ADR (QIHU) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

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