NQ Mobiles new partnership with Linkmotion gives the company exposure to the next big thing in technology, including internet of vehicles, blockchain and smart cars, the analyst said. Linkmotion offers a differentiated full platform operating system, making it not just an infotainment software add-on, but a fully integrated OS and hardware platform that replaces the myriad of ECU complexities while providing car makers with a robust and secure solution, according to Rosenblatt.
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NQ recently received $459 million in cash and $270 million in senior notes at an 8-percent interest rate from the Chinese private equity firm Tongfang Hightech M&A, Zhang said in a Thursday note. (See Zhangs track record here.)
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Rosenblatt SecuritiesJun Zhangmaintains a Buy rating onNQs stockrating with an unchanged $13 price target.
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The company plans on selling its mobile gaming and mobile entertainment businesses, which implies it will hold $778 million in cash, the analyst said. Even when factoring in a $220-million convertible bond that was issued, the stock will still trades below its net cash level, as it closed on Wednesday valued at $390 million.
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Combining this with the fact that the data is shared and stored in the cloud, this connected car environment can be much more than just a car or consumer vehicle but can also become a services and technology platform of the future, Zheng said. Linkmotion has also developed internal blockchain technology and a platform to support connected car services.
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Shares of NQ Mobile were trading higher by 13.50 percent shortly after Thursdays open.
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(NYSE:NQ), a China-based global provider of mobile internet services, was highlighted by a Wall Street analyst as being the next big thing in areas like internet of vehicles,blockchainand smart cars.
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