Northland Capital Markets Starts Nxt-ID, Inc. (NXTD) at Outperform
Northland Capital Markets initiated coverage on Nxt-ID, Inc. (NASDAQ: NXTD) with an Outperform rating and a price target of $6.00. Analyst Michael Latimore forecasts a $2 billion market opportunity for its Smart Wocket.
“NXTD’s main product, the Wocket, is a smart wallet and prevents loss of identity or fraud if the wallet is lost or stolen. Taking into account the 13 million people with lost identities each year, we forecast a $2 billion market opportunity for the Wocket,” said Latimore. “Wocket users simply swipe their credit cards one time into the Wocket and the Wocket stores all information, eliminating need to carry cards. Via voice recognition, the Wocket is activated and a desired card accessed. The user can then use the Wocket just as they would a standard card. Card information is stored in a secure encrypted chip.”
“Consumers are also increasingly interested in using smart, mobile devices in lieu of traditional consumer items. One recent forecast has mobile in-store payment growth increasing 154% over the next four years. This includes use of smartphone-based payments. Several studies show, however, that as many as 60% of consumers don’t trust putting their financial information into phones (partly because they can be hacked just like a computer). We see the Wocket filling that huge segment,” he added. “The Wocket is just now going into production, and we expect a minimum of 2,500 to be available in 4Q. Once through the first production cycle, sales can accelerate, which we expect in 1Q15 and beyond.”
For an analyst ratings summary and ratings history on Nxt-ID, Inc. click here. For more ratings news on Nxt-ID, Inc. click here.
Shares of Nxt-ID, Inc. closed at $2.39 yesterday.