Currency Exchange International is a buy, says Laurentian

A new agreement with a large U.S.-based financial institution for Currency Exchange International (Currency Exchange International Stock Quote, Chart, News: TSX:CXI) is getting the thumbs up from Laurentian Bank Securities analyst Marc Charbin.

This morning, Currency Exchange International announced it had signed a master services agreement with a national financial institution in North America, which will use its inventory on consignment model at select locations and a decentralized foreign banknote model across its customer network.

“The entire CXI team is very proud to have CXI’s services and reputation recognized by the institution as it was determined our software, service and level of dedicated customer care will expand the value of their foreign banknote service down to their clients,” said CEO Randolph Pinna. “We look forward to working with this excellent financial institution.”

Charbin says the way CXI won this business says something about its competitive quality.

“It is our understanding that CXI has won this business from one of its competitors,” says the analyst. “This is continued positive affirmation of CXI’s competitive advantages: software and service. It is also encouraging that CXI continues to win large new agreements without its bank license.”

In a research update to clients today, Charbin maintained his “Buy” rating and one-year price target of $30.00 on CXI.