NEW YORK (TheStreet) -- Shares of Net Element (NETE - Get Report) continue to soar, up 12.09% to $2.04, in morning trading Friday after IFS Securities issued a third-quarter update on the mobile payments technology company on Thursday.

The firm reiterated its "strong buy" rating with a price target of $5.50.

"The company's strategic transition toward mobile payment processing and value-added transactional services continue to drive improved performance during Q3 2014," said Alex McKenzie, IFS Securities President and CEO, in a research note.

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"Additionally, the significant debt reduction initiatives undertaken by management lowered its outstanding total debt balance by $13.7 million to $3.3 million at the end of Q3 2014," McKenzie added.

More than 3.3 million shares had changed hands as of 10:32 a.m., compared to the average daily volume of 2,564,550.

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