NEW YORK (TheStreet) -- China Mobile Games & Entertainment Group (CMGE) shares had coverage initiated with a "buy" rating by analysts at Nomura (NMR) on Monday. Shares are up 2.3% to $18.93 in early market trading today.
The firm set a price target of $32 on the company's shares, suggesting a 73% increase from the stock's previous closing price.
The positive rating follows the release of the company's first quarter earnings results on Friday in which the company reported a 488.2% increase in quarterly revenue from the previous year.
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TheStreet Ratings team rates CHINA MOBILE GAMES -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA MOBILE GAMES -ADR (CMGE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."