NQ Mobile Inc (ADR)(NYSE:NQ) shares climbed in Wednesday’s pre-market session, after the provider of mobile Internet services said a team of independent investigators formed in October has thus far found no evidence that the company engaged in fraudulent conduct including short selling that was alleged by the Muddy Waters research firm.
The investigation, under way for six months, is nearly complete. “Based on the results thus far, the company continues to believe that the allegations by Muddy Waters lack merit, and the company therefore does not anticipate any changes to its previously reported financial results,” the company said Wednesday. NQ was up 8.4% at $12.10 in recent pre-market trading, in a 52-week range of $7.05 to $25.90.
The team was formed to review the fraud allegations made in an October report by Muddy Waters. In November, the company also retained Shearman & Sterling LLP to conduct an independent review, and said Shearman had retained Deloitte & Touche Financial Advisory Services Ltd. as forensic accountants to assist in its investigation. It noted the investigation team has discussed its work and the evidence it has obtained with the company’s independent auditor.
Analysts have a consensus price target of $23 on NQ Mobile Inc (ADR)(NYSE:NQ) which indicates a 89% upside. The consensus rating of the stock is a HOLD with a score of 2.33. There are currently 3 Buy ratings, 2 hold ratings and 1 sell rating on the stock.
A recent analyst action consisted of Topeka Capital Markets reiterating their Buy rating and $30 price target on April 11th, 2014.
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