POINT ROBERTS, Washington, March 16, 2016 /PRNewswire/ --
InvestorIdeas.com a digital news source covering leading sectors including technology reports that technology analyst at Aegis Capital , Ashok Kumar (CFA) , has updated coverage on Nxt-ID, Inc. (NASDAQ: NXTD) with a buy rating and a 12 month target price of $3.00 following the recent WorldVentures deal.
March 15, 2016: Ashok Kumar (CFA)
Nxt-ID, Inc. Rating: Buy
Building out the payment network ecosystem
Nxt-ID, Inc. (NASDAQ: NXTD) is focused on developing and marketing products, solutions, and services for organizations that have a need for the Company's core technologies in digital payment technologies, biometric secure access control; encryption; sensor technologies and miniaturization.
Building the ecosystem: On 2/19/16, NXT-ID announced the first purchase order for the new SmartCard being developed for WorldVentures vacation club Members. The purchase order is for up to $15 million and is subject to WorldVentures acceptance of the prototype card now being manufactured. The purchase order calls for equal monthly deliveries with a value of $2.5 million a month from July to December 2016.
Mobile Wallets Can Deliver Value To Marketers: By aggregating offerings, loyalty points, coupons, and product information from multiple brands on top of faster, more-convenient payments, mobile wallets like Wicket® enable marketers to extend the brand promise, improve conversion rates, and drive traffic and sales.
US mobile payments to reach $142 billion by 2019: Over the last five years, US consumers have adopted smartphones at a breakneck pace: smartphone penetration among the US population grew from just 19% in 2009 to over 70% in 2015. Forrester forecasts that US consumers ramp up their mobile spending from $52 billion in 2014 to $142 billion by the end of 2019.
Remote mobile payments is the mobile extension of ecommerce: This is a focus segment for NXTD. Payments can occur via a merchant's mobile website or app and the consumer may enter payment credentials, select a card already on file or choose an alternative payment method such as a digital wallet. As the first category of mobile payments to gain traction, it is the largest category and will continue to be so through 2019. Remote mobile payments will grow from $43 billion in 2014 to reach $91 billion by the end of 2019, a very healthy CAGR of 16%. Food services such as mobile food ordering and delivery and travel services such as air and hotel purchase will drive a significant portion of the growth. NXTD remains well positioned to monetize this opportunity.
Market and Regulatory changes: In October 2015, US adopted the EMV standard used in other countries to verify the identity of cardholders for card present transactions. At the same time, liability for card fraud will become the retailer's, rather than the card issuer's responsibility. NXTD has reengineered its product portfolio to be compliant with the EMV standard. This is likely to cause disruption in near-term sales. But we expect revenue growth to resume in the June quarter.
Our 12-month price target of $3 is based on a DCF analysis that assumes a 15% discount rate and a 3% terminal growth rate. In October 2015 Aegis Capital Corp. was the sole book-running manager for a common stock offering.
See the full report: http://www.investorideas.com/CO/NXT/Aegis-report-3-16.pdf Note Aegis disclaimers included in report page 8
Additional third party research coverage published on InvestorIdeas.com: http://www.investorideas.com/Research/
InvestorIdeas.com is a global financial news source that follows leading sectors including tech. http://www.investorideas.com
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp. Disclosure: InvestorIdeas.com has been retained by NXT-ID for PR, media and marketing. More info: http://www.investorideas.com/About/Disclaimer.asp and http://www.investorideas.com/About/News/Clientspecifics.asp