More And More Cops To Wear Cameras?
Digital Ally launched a camera that could be used by police officers in December.
Along with Digital Ally, shares of Taser International TASR rose on the events in Ferguson, Missouri. Taser manufactures video cameras specifically for law enforcement use, while Digital Ally has struggled to transition from in-car cameras to body mounted devices.
Related Link: How U.S. Law Enforcement Snaps Up Military Gear
Investors are likely speculating that the fatal shooting will spur wide adoption of video camera use by officers in addition to non-lethal weapons.
Early Stages Of Adoption
On-officer video camera use is still in an early stage of adoption as only a handful of police departments use wearable cameras. Reasons cited for a low adoption rate include high costs and limited evidence that use of a video camera results in a lower rate of police misconduct.
The cost of the camera alone ranges from $800 to $1000 and this does not include varied costs for the police departments to store the data. Additionally, many municipalities may not have the technical know-how to operate and manage video cameras.
Momentum may accelerate over the coming months as police forces across the U.S. began to debunk some of the arguments against video cameras.
Time also reported that the Rialto Police Department in California saw an 88 percent decline in complaints filed against its officers after the first 12 months officers wore body cameras in the field.
Analyst Reaction
Paul Coster of JPMorgan has an Overweight rating on Taser and stated in a note to clients on August 19 that “Taser is well positioned to be a market leader” in body worn video cameras.
Coster adds that there is further upside in shares of Taser which will be supported by an acceleration in the video camera segment. Also, the analyst notes there could be a domestic upgrade and first-time adoption internationally to Taser's non-lethal weapons segment.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.