Industry behemoth Taser, which has changed its name to Axon Enterprise Inc AAXN, announced plans to offer free body cameras for every police officer in the United States, along with a year of free data storage services.
“We believe Axon’s move to a razor blade model will pressurize other smaller players in the industry,” WestPark Capital’s Ishfaque Faruk commented in a report.
Impact On Digital Ally
During a conference call, Digital Ally, Inc. DGLY management said customers would choose the best available product and that Axon had tried similar moves in New York State after losing a sizable NYPD contract to Vievu. Management also indicated that they would “look past Axon’s “publicity stunt”,” Faruk mentioned.
Related Link: Analyst Upbeat On Digital Ally As It Captures Major Order, Expects Legal Tailwinds
Digital Ally already caters to 9,000 local enforcement agencies and some of them are using the company’s software storage services. Citing Digital Ally’s large contract wins in the Emergency Medical Transportation space in F2017, the CEO indicated that the company’s sales in the commercial market was growing and this was a space in which Axon didn't have a significant presence.
“We believe that the company can continue to generate material revenues from the commercial market and valuable recurring revenue dollars from its storage business for the commercial market, FleetVu Manager,” Faruk wrote.
The analyst maintained an Outperform rating on Digital Ally, with a $9 price target.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
