NMC Health share price up 8% after hiring former FBI director to review Muddy Waters allegations
The healthcare provider saw its shares climb higher after announcing its appointment of former Federal Judge and FBI director Louis Freeh to review allegations of financial wrongdoing.
NMC Health shares climbed 8% higher on Friday morning after the company announced it had hired former Federal Judge and FBI director Louis Freeh and his firm to review allegations of financial wrongdoing by short seller Muddy Waters.
The healthcare provider saw its shares fall by 44% since Muddy Waters published a report on December 17 that cast doubts about its finances and asset valuations.
‘The Committee chose Freeh Group to provide a completely independent, unbiased, comprehensive and transparent report that will address all of these allegations,’ said Jonathan Bomford, Chairman of the Independent Review Committee.
The Committee intends to publish findings of the review into all primary allegations made, particularly all those of a financial nature, in advance of the release of the company’s 2019 financial results.
NMC Health is trading at £15.24 as of 11:30 GMT on Friday.
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Barclays Capital reiterates ‘overweight’ rating for NMC Health
Analysts from Barclays Capital believe the stock is better value than its peers, reiterating its ‘overweight’ rating for NMC Health in January.
The investment bank has left its target price of £42.75 for the stock unchanged since August last year, implying the NMC Health has a potential upside 181.25%.
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