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I'm Megan Edwards for InvestmentPitch.com
National Bank Financial has initiated coverage on GuestLogix, symbol GXI on the Toronto Stock
Exchange.
Analyst Nikhil Thadani gives the company an outperform rating, and a12-month target of
$1.75, a premium of 48% to the $01.18 price the day the report was issued.
Toronto-based GuestLogix was founded in 2002 and employs 130 people.
The company's end-to-end solutions enable airlines and rail operators to process ancillary
revenue transactions such as passengers purchasing food and beverage, duty-free goods and ground
connections both on-board and off-board.
Transactions can be performed in person via point of sale handheld devices or self serve
via seatback screens, airport kiosks, smartphones and tablets.
The company is able to process a variety of payment options, including cash, credit cards,
debit cards, coupons, and points, with airlines accounting for more than 90% of GuestLogix's
revenue.
National Bank believes the company will benefit as airlines and rail operators increasingly
adopt on-board and off-board retail to grow ancillary revenue.
For example, adoption of in-flight seat upgrade auctions by just 0.1% of GuestLogix's current
airline passengers could more than double annual revenue.
Analyst Nikhil Thadani stated, "With the massive organic growth opportunity and clearly defined
management focus, we like the odds."
Subsequent to National Bank's report, the company announced a 10-year agreement with
NCR Corporation, the global leader in consumer transaction technologies.
Brett Proud, president & CEO stated, "GuestLogix has seen immense trending towards self-service
retailing preferences within the travel industry, and we are proud of our ability to support
NCR in its continued efforts to lead this charge and enrich the way that travel operators
around the world are able to serve their passengers."
The company currently trades at $1.25, below the $1.75 target price, and with 79.7 million
shares outstanding, the company is capitalized at $99.6 million.
For more information, please visit the company's website www.guestlogix.com or contact
Dan Thompson at 416-849-1566 or email dthompson@guestlogix.com.
For more information about National Bank Financial or to obtain a copy of their research report,
contact your nearest National Bank Financial office. Their branches are listed on their
website at www.nbf.ca. (Ashleigh use this URL)
I'm Megan Edwards for InvestmentPitch.com For more video news, and to view our disclaimer,
be sure to visit our website www.investmentpitch.com. This video is for information purposes only
and it is not a recommendation to buy or sell any securities.