New York, NY / ACCESSWIRE / July 21, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has initiated coverage on Net Element, Inc. (NETE).
“We are excited about NETE’s growth potential over the next 2-3 years. As merchants and consumers continue to shift to a cashless environment, we see NETE as an emerging leader in mobile payments, value-added services and technologies. We look forward to following the company and are initiating coverage with a price target of $3.27 per share.”
Additional investment highlights are as follows:
- Repositions business activities. As part of a renewed strategy to reposition business activities and focus on mobile payments and transactional processing solutions, NETE completed a number of acquisitions and dispositions in 2013. The company divested its non-core online media/entertainment business assets in the third quarter of 2013. NETE entered the payment processing and financial technology businesses through the acquisitions of Unified Payments in April 2013 and Aptito in June 2013. We believe the repositioning has made NETE a strong financial technology-driven service company capable of providing end-to-end payment solutions to enable commerce globally. The acquisition of Unified Payments was a significant milestone, which drove the company revenues more than ten-fold in 2013 to $19 million.
- Tremendous market opportunity. The total addressable market for transaction processing in the U.S. is large and growing, offering enormous growth potential for NETE. According to the Nilson Report, market for all card type transactions in the U.S is expected to grow at 9.8% annually to $6.0 trillion by 2017. Global market for mobile m-payments and e-commerce is estimated at $796 billion and $1.8 trillion in 2014, according to Capgemini World Payments Report 2013. We believe NETE is well positioned to capture an increasing slice of both transaction processing market and mobile payments in the U.S. and in emerging markets through renewed sales and marketing approaches complemented by its next generation proprietary technologies and value added services including TOT Platform, Payment Browser and Aptito.
- Diverse and recurring revenue streams. NETE’s broad portfolio of payment processing and financial technology solutions leverage the growth in payments to deliver a diverse mix of recurring revenues with low customer concentration. The company’s credit card payment processing services in the U.S. serve SME merchants across diverse industries with each SME typically processing on average $10,000 a month in credit card transactions at $50.00 per transaction for average transaction value of ~$500,000. This merchant diversification not only makes the business less sensitive to changing economic conditions in any particular industry but also lowers any adverse effects on financial condition should there be any loss of a merchant.
The report is available here: NETE Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at http://www.seethruequity.com/.
About Net Element, Inc.
Net Element, Inc. (NETE) is a global financial technology-driven company specializing in mobile payments and transactional services in emerging countries and in the U.S. The company operates its business through its global mobile payments and transaction processing provider, TOT Group. TOT Group companies include Unified Payments, recognized by Inc. Magazine as the #1 Fastest Growing Private Company in America in 2012, Aptito, a next generation cloud-based point of sale payments platform, and TOT Money, which has a leading position in Russia and has been ranked as the #1 SMS content provider by Beeline, Russia's second largest telecommunications operator. NETE has global development centers and high-level business relationships in the U.S., Russia and Commonwealth of Independent States. The company has U.S. headquarters in Miami, Florida and international headquarters in Moscow, Russia.
For more information, visit http://www.netelement.com/.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit http://www.seethruequity.com/.