Aegis Capital Research Update Following WorldVentures SmartCard Deal; Nxt-ID 12 Month Target Price of $3.00

Mar 16, 2016, 08:00 ET from

POINT ROBERTS, Washington, March 16, 2016 /PRNewswire/ -- 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: Note Aegis disclaimers included in report page 8

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