EAGLE EYE SOLUTIONS (EYE:AIM) 550.25p

Loss to date: 9.1%

Adding a new banner name to its client roster by signing a five-year deal with the UK’s number four supermarket chain Morrisons is a timely reminder of the potential of Eagle Eye Solutions (EYE:AIM).

Eagle Eye’s loyalty and promotions omnichannel software-as-a-service platform called Eagle Eye AIR is clearly gaining traction with retail businesses. The platform allows client customers to validate and redeem digital promotions in real-time, a key loyalty lever to pull in a budget-conscious climate.

WHAT HAS HAPPENED SINCE WE SAID TO BUY?

The new agreement will see Eagle Eye’s AIR platform rolled out to all the supermarket’s 499 UK stores, a strong vote of confidence from Morrisons. This will allow the supermarket to beef-up its own customer loyalty programme and allow its shopper to enjoy exclusive product prices and earn points that can be cashed-in at the checkout on product lines, fuel, instore or online.

‘It will offer Morrisons more ways to engage with customers and facilitate scaling-up the volume of targeted offers available, giving customers more choice,’ said analysts at Shore Capital.

New business momentum has been positive in 2023 with a string of contract wins. 

WHAT SHOULD INVESTORS DO NOW?

The Morrisons contract news gave investors and the share price a big lift – the stock jumped nearly 9% on the announcement. Yet 2023 to date has been marked by share price volatility, understandable for a relatively young company early in its growth journey and where profit is coming from a low base.

That said, we continue to see Eagle Eye as a company perfectly placed to emerge as a vital technology partner to retailers, and its growing list of banner names – Tesco (TSCO), Asda, Waitrose and John Lewis, JD Sports (JD.), Pret a Manager, and now Morrisons, underlines this potential.

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