Market Overview

Can NXT-ID's Crypto Platform Lead More Merchants To Accept Digital Currency? Maxim Weighs In

Share:
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.

The Analyst

Maxim Group's Brian Kinstlinger maintains a Buy rating on NXT-ID's stock with an unchanged $5 price target.

The Thesis

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.

Price Action

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.

Related Links:

Long Island Iced Tea Sitting On 350% Gain After Rebranding As 'Long Blockchain Corp'

Want Your Stock To Rally? Just Mention 'Bitcoin' Or 'Blockchain'

Latest Ratings for NXTD

DateFirmActionFromTo
Aug 2019Maxim GroupDowngradesBuyHold
Apr 2018Maxim GroupAssumesBuy
May 2015Vista Partners

View More Analyst Ratings for NXTD
View the Latest Analyst Ratings

 

Related Articles (NXTD)

View Comments and Join the Discussion!

Posted-In: Brian Kinstlinger FitPay Maxim Group smart watchesAnalyst Color Cryptocurrency Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
UBERRBC CapitalMaintains50.0
UBERMizuhoMaintains42.0
WIXJMP SecuritiesMaintains363.0
UBERBarclaysMaintains43.0
CVIJP MorganInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com