Following the win of some very competitive business, Cantor Fitzgerald Canada analyst Ralph Garcea is feeling bullish about NeuLion (TSX:NLN).
The English Football League (EFL), which governs the three divisions below the Premier League in English soccer, today announced it had agreed seven-season partnerships with NeuLion and UK-based digital agency Realise.
NeuLion will provide streaming, merchandising, and payment services and Realise web site design.
“Both companies understand the unique and varied challenges we continue to be faced with and throughout this extensive RFP process they have consistently demonstrated they have the skills, expertise and knowledge to deliver against EFL Digital’s objectives,” said EFL CEO Shaun Harvey. “The end user, the fans of our clubs, are very much where their collective focus lies and a proven track record, a flexible approach to platform delivery and significant experience in video streaming means we are not only confident in the proposed technical solution but also how it will perform commercially.”
Garcea says getting this business was more than competitive for NeuLion.
“Following one of the most comprehensive procurement processes in the history of the EFL, in which over 175 of the world’s leading digital agencies expressed an interest (including MLB Advanced Media), the final two have now been selected for a contract that runs until the end of the 2022/23 season,” notes Garcea. “The streaming, merchandising, and payment services will be provided by NLN, which boasts other international sporting clients such as the NFL, Euroleague, NBA and UFC. NLN also has significant experience working in the football (soccer) industry with the Premier League and Major League Soccer (MLS). Realise, a leading UK based digital agency, will be tasked with the design and development of EFL Digital’s club web and mobile sites as well as implementing the highly intuitive Episerver content management system (CMS).”
In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target of $2.15 on NeuLion, implying a return of 117 per cent at the time of publication.