NEW YORK, NY / ACCESSWIRE / November 13, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on RocketFuel Blockchain, Inc. (OTC PINK: RKFL) with a price target of $6.70.
The report is available here: RKFL Initiation Report.
We initiate coverage of RocketFuel Blockchain, Inc. (OTC PINK: RKFL, ''RocketFuel'') with a price target of $6.70. Headquartered in Las Vegas, NV, RocketFuel is developing a new blockchain-based check-out technology platform for e-commerce, which is designed to increase the speed, security, and ease-of-use for online and mobile transactions. Led by Chairman and CTO Joe Page and CEO Gert Funk, who co-founded the company, RocketFuel is managed by experienced technology executives with backgrounds in blockchain, e-commerce, payment technologies, and intellectual property. We see several key events ahead for the company as it advances towards commercialization in 2019.
RocketFuel platform promises disruptive potential for ecommerce checkout and digital advertising
RocketFuel has completed a prototype of its technology platform and is in the process of finalizing mobile applications for iOS and Android. The company's aim is to disrupt existing ecommerce checkout technologies with a new solution designed to enable a more convenient, ''frictionless'' checkout process secured by blockchain. RocketFuel's proprietary technology enables single click functionality to invoke payment conveyance with integrated customer address data through a distributed ledger, or ''blockchain,'' which lowers costs for merchants will no longer have to operate complex payment and checkout infrastructures. Additionally, RocketFuel has integrated capabilities to serve advertisements with fully integrated check-out, meaning that advertisements can be placed on a third-party web site that allows consumers to transact through the advertisement without leaving the page. The result promises significantly lower processing fees for merchants, faster time-to-purchase for consumers, and the potential for more efficient, higher conversion digital advertising.
Large market for blockchain in ecommerce and digital advertising
We are intrigued by the market opportunity for RocketFuel's blockchain-based e-commerce checkout platform technology. Early applications of blockchain for secure transaction processing, such as the emergence of cryptocurrencies like Bitcoin, Ethereum and Ripple, suggest the technology may have a broader role in ecommerce technology spending. Indeed, according to the Worldwide Semiannual Blockchain Spending Guide from International Data Corporation (IDC, July 2018), global spending on blockchain solutions is expected to increase at a 73.2% compounded annual growth rate (CAGR) from 2017 to 2022, reaching $11.7 billion in 2022. RocketFuel has identified an initial target market of US ecommerce sales, which were $453 billion in 2017 (CBRE). Moreover, the company's platform has powerful implications for online advertising, because it can enable advertisements that can support transactions without requiring users to navigate away from their web page. We note that digital advertising recently surpassed television as the largest area of spend by marketers in the US in 2017, reaching $209 billion. As a result, the company is targeting the intersection of three powerful markets.
Initiate coverage with a price target of $6.70
We initiate coverage of RocketFuel with a price target of $6.70. We see the company as an intriguing speculative growth company targeting the large markets for blockchain technology applications in e-commerce and digital advertising. If achieved, the target represents a value of 1.0x 2020E gross transaction volume, and 8.3x 2021E revenues, reflecting the enthusiasm for blockchain and the large opportunity if RocketFuel is successful in creating adoption of its platform.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About RocketFuel Blockchain
RocketFuel Blockchain Company is developing technology to bring highly efficient check-out systems to eCommerce. These new check-out systems are based on blockchain technology and are designed to increase speed, security, and ease of use. RocketFuel believes that users of its technology will be able to enjoy seamless check-out and forget about the clunky cart paradigm of the past. Merchants will be able to implement new impulse buying schemes that may be unavailable in present day eCommerce sites. More information about RocketFuel is available at: rocketfuelblockchain.com.
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