By Sam Boughedda
Investing.com — Shares of cryptocurrency exchange Eqonex Ltd (NASDAQ:EQOS) fell more than 6% after H.C. Wainwright analyst Kevin Dede downgraded the stock.
The analyst made the decision following news last week that Eqonex CEO Richard Byworth was stepping down amid a strategic review and being replaced by COO Andrew Eldon.
"The December 20 bomb. A somber end-of-year surprise came in the announcement that CEO Richard Byworth was replaced by COO Andrew Eldon, effective immediately, while "transformational" strategic opportunities were actively pursued," Dede said.
The analyst added that they had hoped Eqonex would bounce back on the sharp acceleration of trading volumes, with more users understanding the value of Eqonex's platform.
However, he said Eqonex daily trading volume is thought to be "hovering at flattish levels through the fall season instigating the board's re-thinking leadership and the end game within a rapidly advancing crypto environment."
Pointing to Eqonex's press release in which it said it is engaged in "ongoing strategic discussion with third parties," Dede explained that it implies the company is evaluating merger or takeover options.
"With no clearly articulated strategy in the terse December 20 press release and a nebulous prognosis, we are taking our licks and moving to the sidelines with a Neutral rating and no PT, downgraded from our previous Buy," Dede said.