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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