Chardan: Buy Digital Ally, It's Worth $20/Share

In a report published Thursday, Chardan Capital Markets analyst James McIlree initiated coverage of

with a Buy rating and a price target of $20. Digital Ally is a leading provider of in-car, and body camera systems to law enforcement agencies worldwide. The company appears poised to benefit from higher demand for security cameras by citizens, legislators and law enforcement agencies. "We expect the company's FirstVu body cameras to be a significant contributor to revenue this year and in the future," analyst James McIlree wrote. The market for camera systems for law enforcement vehicles and officers is largely underpenetrated in the US as well as globally. The addressable market for body cameras is large, estimated between $500 million to $750 million. The in-car market is also significant, estimated between $1.5 billion and $2.0 billion. "We believe the international market could be at least the same size as the US," McIlree added. Digital Ally has guided to 2015 revenue of $25 million, much of which is driven by the expected success of FirstVu. The company also sells a suite of products to the fire/EMS and commercial fleet markets. In the report Chardan Capital noted, "Digital Ally recently introduced FleetVu, an asset management and cloud storage offering which allows management of fleet and driver performance, real-time telematics information, alerts for speed violations, idle times and maintenance. Initial response to FleetVu is positive and the company desires to double its sales force to this market."