Can NXT-ID's Crypto Platform Lead More Merchants To Accept Digital Currency? Maxim Weighs In
NXT-ID Inc (NASDAQ:NXTD), a technology company that supports digital payments, announced Wednesday its FitPay subsidiary along with a private company called Cascade Financial Tech Corp will develop a payment platform that allows customers to pay for goods and services through cryptocurrencies.
Maxim Group's Brian Kinstlinger maintains a Buy rating on NXT-ID's stock with an unchanged $5 price target.
The emergence and increase in value of multiple cryptocurrencies has created a market for companies like NXT-ID to address, Kinstlinger said in a note. As it stands now, few retailers accept cryptocurrencies as payment given the associated volatility which creates a risk for companies. NXT-ID's platform addresses this issue as it reduces the financial risk to the merchant as the platform will likely exchange cryptocurrencies for credit on a prepaid credit card with a traditional currency.
The company is in the process of "cleaning up" its balance sheet and striking "lucrative" deals that will establish its technology for the wearable payments sector. In fact, the most notable near-term catalyst is activation of payments capabilities on the new Garmin Ltd. (NASDAQ:GRMN) smart watch in the first half of 2018.
A $5 price target is based on the analyst's 10-year discounted cash flow model and assumes a 23 percent discount rate.
Shares of NXT-ID soared to a new 52-week high of $8.59 and was last seen at $7.09, up 122 percent on the day.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.