Today, SeeThruEquity issued a company update
on Net Element alongside an upgraded price target.
“Net Element quickly responded to Apple’s
announcement with its own announcement on September 17th that it will integrate
Apple services into its point-of-sale payment acceptance hardware and software,
enabling company merchants the ability to accept Apple Pay from customers. Net
Element will be offering a free NFC Contactless, EMV-enabled point-of-sale
terminal to merchants that upgrade to its Unified Payments service offering.
With an expected 60 million iPhone users expected to begin using the mobile wallet,
we view this as material news for Net Element shares. Subsequently, we are
raising our price target on Net Element to $5.17 per share,” stated Ajay
Tandon, CEO of SeeThruEquity.
Here are a few highlights from the company
update:
• Apple
Pay is a big announcement for Net Element. On September 9, 2014, Apple
announced its new mobile payment system Apple Pay. Using a Near Field
Communication antenna in the iPhone 6, a consumer will be able to pay for goods
and service using their phones. While mobile payments are not a new innovation
and there are other competitive alternatives to Apple Pay that have not caught
on in the US, Apple’s presence in the market will garner significant attention
to the space. As consumers become more comfortable with using their iPhones as
a mobile wallet, other competing mobile payment alternatives are anticipated to
also gain in popularity and utilization. This is a win-win for Net Element, as
it has consistently positioned itself as a payment processor for nearly all
mobile payment alternatives.
• Net
Element recently announced a development for debt conversion. On September 15,
2014, Net Element announced that it has entered into a debt exchange agreement
with Crede. Under the agreement, Net Element immediately eliminated $15.8mn of
indebtedness under certain promissory notes. After acquiring the promissory
notes, Crede exchanged them Net Element common stock.
• SeeThruEquity
is raising the target price to $5.17 from $3.47. This represents 73.4% upside
potential from the recent market price of $2.98. The equity research firm feels
that NETE’s long-term revenue prospects have been significantly increased by
the announcement of Apple Pay.
The original initiation report and full
updates can be found at the following link: http://www.seethruequity.com/#!nete/c1e5c
For more information about Net Elements,
please visit: www.netelement.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
