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Shares of "China's Tinder," app- and mobile-game maker Momo  (MOMO)  gained additional ground on Wednesday after receiving an upgrade from Citigroup to buy from neutral.

Momo shares rose as much as 5% before settling back down with a 3.44% gain to $28.25 on the Nasdaq Stock Market. The move follows Tuesday's stock-price surge of more than 10% after the company reported fiscal first-quarter net income that surpassed analysts' forecasts.

Momo also said yesterday that it now expects second-quarter revenue growth to come in above analysts' consensus estimates.

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That prompted Citigroup analyst Hillman Chan to upgrade his rating on the company. In a research update to clients, Chan cited continued healthy growth in paying users, and the company's ongoing efforts to turn so-called long-tail users into paying subscribers.

Chan also noted that the regulatory overhang related to the Chinese government's recent directive for the company to remove its Tantan dating app from some Chinese app stores was "fairly priced."