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Fly News Breaks for February 7, 2019
USAT
Feb 7, 2019 | 09:36 EDT
Craig-Hallum analyst George Sutton suspended his rating on shares of USA Technologies after the company's long-term auditor RSM resigned. In its resignation, the auditor suggested "it can no longer rely on management's representations in connection with the audit of 2017, internal control over financial reporting and consolidated financial statements," Sutton tells investors in a research note. He previously had a Buy rating on the shares with an $11 price target. USA Technologies in early trading is down 46%, or $3.17, to $3.71. Sutton views RSM's move as "highly unusual," particularly "given how long the process has gone on, the auditor's intimate role in the several month long process and the fact it is has pulled the certifications from its unqualified audit from the prior year." The analyst wants more clarity before he can reinstating a rating and price target on USA Technologies.
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