NQ Mobile Downgraded by Oppenheimer to “Market Perform” (NQ)
NQ Mobile (NYSE:NQ) was downgraded by analysts at Oppenheimer from an “outperform” rating to a “market perform” rating in a research report issued to clients and investors on Friday, TheFlyOnTheWall.com reports. They currently have a $19.00 price objective on the stock. Oppenheimer’s target price points to a potential upside of 78.74% from the company’s current price.
The analysts wrote, “On Thursday, a report issued by a well-known short seller alleged serious irregularities at NQ. While many of the allegations raised were not new, the report did provide some anecdotal evidence supporting these allegations. NQ rejected the allegations as false and plans a detailed response on Friday. We expect NQ to address the specifics of those allegations directly, most importantly providing independent verification of its cash positions and additional transparency regarding its channel and payment partner relationships. While NQ’s response can potentially help ease investors’ concerns and support the stock, we’re downgrading the stock from Outperform to Perform and removing our $19 PT. Te controversy is likely to remain an overhang on NQ in the near term.”
Shares of NQ Mobile (NYSE:NQ) traded down 12.08% during mid-day trading on Friday, hitting $10.63. The stock had a trading volume of 31,720,920 shares. NQ Mobile has a one year low of $5.07 and a one year high of $22.52. The stock’s 50-day moving average is $17.3 and its 200-day moving average is $10.92. The company has a market cap of $547.2 million and a price-to-earnings ratio of 62.00. NQ Mobile also was the recipient of some unusual options trading activity on Thursday. Stock traders bought 33,597 call options on the stock. This is an increase of approximately 306% compared to the typical daily volume of 8,284 call options.
NQ Mobile (NYSE:NQ) last issued its quarterly earnings data on Monday, August 12th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.06. The company had revenue of $41.40 million for the quarter, compared to the consensus estimate of $38.34 million. During the same quarter in the previous year, the company posted $0.14 earnings per share. The company’s revenue for the quarter was up 107.4% on a year-over-year basis. Analysts expect that NQ Mobile will post $1.04 EPS for the current fiscal year.
NQ has been the subject of a number of other recent research reports. Analysts at Muddy Waters initiated coverage on shares of NQ Mobile in a research note to investors on Thursday. They set a “sell” rating on the stock. Separately, analysts at Macquarie initiated coverage on shares of NQ Mobile in a research note to investors on Thursday, October 17th. They set an “outperform” rating on the stock. Finally, analysts at Canaccord Genuity raised their price target on shares of NQ Mobile from $17.00 to $28.00 in a research note to investors on Tuesday, August 13th. They now have a “buy” rating on the stock. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $19.00.
NQ Mobile Inc (NYSE:NQ), formerly NetQin Mobile Inc, is a holding company.
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