Update (Oct 27): Attached below is the official statement from Eros on the downgrade of its stock. Update (Oct 26): In a statement to the BSE (pdf), Eros acknowledged the downgrade of its stock rating and said that downgrades and upgrades happen to stocks regularly and that this was not a cause for concern. However, the company did not address the core issue of why the stock was downgraded: uncertainty over its UAE business. Earlier today: Eros’ stock rating has been downgraded by the Wall Street bank Wells Fargo, reports ET. According to the investment bank, Eros’ continued increase in revenues from the UAE is unexplained, which led the bank to decrease Eros shares on the NYSE. Overall, the company’s stock fell 16.6% on the New York Stock Exchange after the rating, while on the BSE, its subsidiary Eros International’s stock fell by 3.8%. Eros apparently held a concall with the US based analysts on Friday last week to counter the allegations about its growing revenues in the UAE. However, Wells Fargo was not convinced and released a report the same day that downgraded Eros stock to ‘market perform’. The agency said that "Management broke down the receivables in a very detailed manner, but quite frankly it was still difficult for the analysts on the call to fully grasp the collection cycle and movement of funds (particularly deals booked in the UAE)." We have asked Eros for a statement on the situation, and will update the report when we hear back. 30 million users: ErosNow, the digital video streaming…
