UPDATE: Oppenheimer Downgrades NQ Mobile to Perform, Removes PT as Controversy is Expected to Remain an Overhang

In a report published Friday, Oppenheimer analyst Andy Yeung downgraded the rating on

from Outperform to Perform, and removed the $19.00 price target. In the report, Oppenheimer noted, “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.” NQ Mobile closed on Thursday at $12.09.