Monitise drops 5% after Jefferies downgrade to 'hold'

24th Jun 2015 12:34

Shares in mobile banking software group Monitise slumped 5% on Wednesday after Jefferies downgraded the stock to 'hold' from 'buy' and slashed its price target to 1,500p from 3,600p."With new customer wins thin on the ground and recent wins likely to take some time to convert into material end-user metrics, the risks have become too great to maintain a credible positive view on the stock," it said.Jefferies also said that the recent disclosure by Royal Bank of Scotland in its technology presentation that the hosting of the mobile platform, built by Monitise, is to be taken in-house is slightly concerning.The broker said it has been a particularly difficult six months for the company. It pointed to a full strategic review that culminated in no M&A or strategic partnerships, a major reduction in guidance and the removal of mid-term end-user targets, and the departure of the founder and former chief executive.