- Rise
in transaction volume, product enhancements and asset acquisition show Net
Element’s ongoing growth strategy
- SeeThruEquity
labels Net Element an ‘intriguing’ high-risk, high-reward growth company
with stable share price target
- Since
2014, Net Element’s revenues from payment processing services have nearly
tripled
A series of optimistic developments for payment tech
processor Net Element, Inc. (NASDAQ: NETE) has led independent equity research
firm SeeThruEquity to issue an update of its coverage on the company (http://ibn.fm/7NBjg). The
research firm is taking note of Net Element’s forecast for an increase in gross
profits based on its acquisition of services assets from partner Universal
Payment Systems (“UPS”), an approximately 40 percent increase in its trading
volume and number of transactions, and its addition of a smart security
function in its business-to-business vendor payment platform Netevia (www.Netevia.com).
“NETE’s announcements suggest the company continued to
identify growth initiatives, as evidenced by growth in transaction volume, new
product enhancements, and the UPS deal announcement,” SeeThruEquity
wrote (http://ibn.fm/hgjTQ),
labeling the company an “intriguing” high-risk, high-reward growth company in
the financial technology space.
Net Element is a company that serves small to medium
enterprises through its innovative productivity-generating platforms. Its
expertise in generating multi-payment channel possibilities to consumers
extends to mobile technology, linking brick and mortar business, as well as
unbanked, web-based businesses, to their customers. The company also provides
transaction analysis capability to help businesses optimize their revenue
streams.
The transaction growth reports cited by SeeThruEquity show
that, during the first half of 2018, Net Element outperformed its first-half
2017 results, processing $1.62 billion in transactions over the previous $1.18
billion transaction mark. The number of transactions processed by the Netevia
platform grew from 35.7 million to 50.2 million, a sign that the platform is
increasingly being adopted for completing financial transactions. Since
SeeThruEquity began coverage on Net Element in 2014, its annual revenues have
increased from $21.2 million to $60.1 million.
The $2.7 million UPS deal is expected to generate $5 million
in gross profits alone over the next four years, with ongoing profit
contribution thereafter. UPS is a California-based provider of bankcard payment
processing services and value adds, and the deal transfers a suite of solutions
to Net Element.
SeeThruEquity continues to hold to a share price target of
$25 for the company. During the past year, shares have fluctuated between $2.60
and $33.51, but the $25 mark would generate a value of 1.3 times the estimated
revenues of $72.1 million this year, the agency states.
For more information, visit the company’s website at www.NetElement.com
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