ZURICH (Reuters) – Shares in Temenos fell more than 9% on Friday, a day after a Hindenburg Research report alleging accounting irregularities wiped off more than a quarter of the Swiss software company’s market value.
Temenos said its board of directors rejected the report published by Hindenburg and that it was confident in the strength of its business, performance and cash position.
The Swiss company said the Hindenburg report contained factual inaccuracies and analytical errors, as well as false and misleading allegations, which it stated were “intended to adversely impact the company’s share price”.
The stock, which fell by 28% on Thursday, was down 6.8% at 59.2 Swiss francs as of 1106 GMT and on course for its steepest weekly fall in percentage terms since 2009.
The company did not immediately respond to a request for comment.
Bank Vontobel said the Hindenburg report had created uncertainty and cut its rating on Temenos shares to “hold” from “buy”, noting that it was applying a temporary 25% discount to fair value on the stock until confidence had been restored.
Temenos said it would issue its audited results for 2023 after the market close on Feb. 19 as scheduled and that the results were in line with a pre-results announcement it made on Jan. 19.
(Reporting by Paolo Laudani; editing by Dave Graham and Jason Neely)
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