NYX Gaming’s (TSX:NYX) most recent results have Mackie Research Capital analyst Nikhil Thadani feeling bullish about the company’s prospects.
Yesterday, NYX reported its Q1, 2015 results. The company lost $5.03-million on revenue of $9.9-million, nearly doubling the $5-million topline the company posted in the same period last year.
“I am very pleased to report that in our first full quarter of 2015, we have been able to carry forward our growth momentum from last year resulting in a strong start to 2015,” said CEO Matt Davey. “With our proven abilities to identify accretive opportunities, I am confident that our track record of operational and financial success will continue. With our experienced management team, dedicated employees and supportive shareholders we are able to position ourselves for future growth.”
Thadani says recent acquisitions suggests management has a lot of confidence in its growth strategy.
“We estimate NYX’s cash balance at ~$8 mln, post recent tuck-in acquisitions, which likely signals a high level of confidence by management in securing financing for acquiring B2B online casino assets from Amaya,” said Thadani. “On the flip side, with a reduced cash balance we note NYX needs to rapidly achieve cost synergies in order to execute more M&A.”
In a research update to clients today, Thadani maintained his “Buy” rating and one year target price of $6.50 on NYX Gaming, implying a return of 36% at the time of publication.