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MGT Capital Initiated Buy At Ascendiant, Positive On Co's Cyber Security Focus

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MGT Capital Investments Inc. (NYSE: MGT) announced that it has inked an agreement with D-Vasive Inc to acquire certain technology and assets. The deal marks MGT Capital’s move into cyber security and could be a “major catalyst for the stock,” Ascendiant Capital Markets’ Edward Woo said in a report. He initiated coverage of the company with a Buy rating and a price target of $6.

Cyber Security In Focus

Following several years of being in the social and casino gaming space, MGT Capital decided in 2015 to make an exit. The company is now focusing on moving into the cyber security space.

In May, MGT Capital signed a deal with D-Vasive, a provider of anti-spy software. The deal involves the purchase of certain technology and assets for 44 million shares of MGT Capital’s stock, representing ~66 percent ownership of the combined company. MGT Capital also announced the planned appointment of John McAfee as Executive Chairman and CEO.

“We believe there are substantial market demand for cyber security products. Revenue and market valuations for companies in this sector are in the multi-billions. While extremely competitive with many larger and established companies, we believe that the rapid pace of evolving and persistent technologies will present opportunities for new entrants like MGT to enter this very large market,” Woo mentioned.

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Latest Ratings for MGT

DateFirmActionFromTo
Aug 2016Initiates Coverage onBuy

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Posted-In: Ascendiant Capital Markets Edward WooAnalyst Color Long Ideas Initiation Analyst Ratings Trading Ideas

 

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