Diamond Equity Research has initiated coverage on Guardforce AI (NASDAQ:GFAI) Co Ltd with a price target of US$2.43 citing the company’s growth potential amid increasing demand for improved cybersecurity solutions.
Guardforce AI (NASDAQ:GFAI) is a global integrated security solutions provider offering cash solutions and cash hanging services that is expanding into the robotics as a service and cybersecurity industries to diversify its revenue streams.
“We believe the market has yet to realize the company’s potential and its ability to grow its non-cash management businesses,” Diamond analysts wrote in a note.
READ: Guardforce AI partners with Hong Kong's Blue Pin for hotel robotic solutions upgrades
The analysts were particularly impressed with the company’s dominant position in Thailand’s cash management and secure logistics market, where it has more than four decades of operational excellence.
“Guardforce AI commands approximately one-fourth share of the country’s secure logistics market, resulting from its long-term relationship with leading commercial banks and the Bank of Thailand,” the analysts wrote.
In the note, the analysts highlighted that Guardforce AI has accelerated its growth through acquisitions and partnerships, including partnering with a US-based technology system integrator which has provided the company access to the lucrative market of the Greater Bay Area and North America.
“Guardforce AI’s expansion within these industries seeks to magnify the company’s growth, given the multi-billion addressable markets and double-digit industry growth rates,” Diamond analysts wrote.
Shares of Guardforce AI were trading around US$0.68 just after noon on Tuesday.
Contact Emily at emily.jarvie@proactiveinvestors.com
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