SouFun (SFUN) Stock Gains After Qihoo 360 Receives 'Going Private' Offer

NEW YORK (TheStreet) -- Shares of SouFun (SFUN) were gaining 7.3% to $9.59 Wednesday as Chinese stocks rally following Qihoo 360 Technology's (QIHU) buyout offer.

Qihoo 360 CEO Hongyi Zhou and other shareholders offer to buy the Chinese Internet company for $77 a share on Wednesday to bring it private. The offer represents a 16.6% premium over Qihoo 360's Tuesday closing price of $66.05 a share.

More than a dozen Chinese companies received buyout offers from executives this year, with Qihoo 360 being the largest of the group, according to Barron's.

JL Warren Capital analyst Junheng Li believes SouFun is a likely candidate to receive a buyout offer in the near future.

SouFun is a Chinese online real estate portal that also operates websites for home furnishing and improvements.

TheStreet Ratings team rates SOUFUN HLDGS LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SOUFUN HLDGS LTD (SFUN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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