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NYX Gaming is a buy, says Global Maxfin analyst Grigo

NYX Gaming

NYX GamingInvestors looking for exposure to the gaming space should consider NYX Gaming (NYX Gaming Stock Quote, Chart, News: TSXV:NYX), says Global Maxfin Capital analyst Manish Grigo.

In a research update to clients yesterday, Grigo initiated coverage of NYX with a “Buy” rating and one year target of $6.00, implying a return of 33.3% at the time of publication.

Grigo says he likes NYX, which has built a library of more than 350 gaming titles and offers 550 more through third-party vendors, for a number of reasons. He believes the company has high barriers to entry, strong recurring revenue, has great potential for near-term M&A, and could benefit from potential changes to gaming regulation in the United States.

The analyst cites a recent report from H2 Gambling Capital that says the global gambling market is set to grow by a Compound Annual Growth Rate (CAGR) 9of 3.6% between 2014 and 2018. But NYX, he points out, is part of the much more tony interactive gaming market, which includes all online gaming. The report says this segment will grow at a CAGR of 9.1% over the same period.

“We like NYX because of its leverage to interactive gaming and, more specifically, mobile gaming. NYX is an enabler of digital gaming, and its B2B business model, coupled with long-term relationships and marquee client base, bodes well for the Company’s future growth,” said Grigo.

Founded in 1999, Las Vegas-based NYX develops and manufactures digital gaming solutions for interactive, social and mobile gaming. The company IPO’d on the TSX Venture Exchange in December.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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