Cantor Fitzgerald raises target on Guestlogix to $2.10

Cantor Fitzgerald Canada analyst Justin Kew says Guestlogix’s (Guestlogix Stock Quote, Chart, News: TSX:GXI) first partnership with a content and connectivity provider is a milestone for the company.

This morning, Guestlogix announced that it had reached an agreement with Global Eagle Entertainment that will see the Canadian company incorporate its OnTouch merchandising platform into Global Eagle Entertainment’s inflight entertainment and connectivity (IFEC) portal. Passengers will be able to access products such airport transfers and theme park tickets.

CEO Brett Proud commented on the arrangement.

“The passenger experience is a major focus for airlines, and Global Eagle Entertainment is one of the key players delivering customized solutions to airlines around the world,” he said. “Allowing passengers to purchase and access items — from movies and television to destination-based activities — using smart phone and tablet devices is a prime example of matching passenger enhancements with ancillary revenue generation. ”

Kew says he expects this move will generate $300-million in gross transaction value, surpassing Guestlogix’s recent deal with China Southern last July and Norwegian Air last month. “We believe that this win demonstrates GuestLogix’s emerging dominance in the passenger travel retail.” said Kew in a note to clients this morning.

The Cantor Fitzgerald Canada analyst had a BUY recommendation and $2.00 one-year target on Guestlogix, this morning he raised his target to $2.10.

Shares of Guestlogix closed today up 2.8% to $1.48.