DGLY - BUY Rating - Price Target $18 -Source Capital Group, Inc. Announces Investment Opinion:
Source Capital Initiates Coverage on Digital Ally, Inc. Buy
Recommendation
May 13 at 08:00
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Source Capital Group, Inc. ("Source Capital") announced today that it has initiated research coverage on Digital Ally, Inc. ("Digital Ally" or the "Company") (Nasdaq:DGLY) with a BUY recommendation and a 12-month price target of $18.00 per share. Digital Ally produces and sells digital video imaging and storage products for use in law enforcement and security applications.
For the quarter ended March 31, 2008, the Company reported revenue of approximately $8.6 million, an increase of 150% from the same quarter last year and up 22% sequentially from Q407. In addition to its products for the law enforcement market, the Company just introduced the DVM-250, a lower priced event recorder aimed at the broader transportation market. "We believe that Digital Ally has taken the lead in conversion of law enforcement in-car video recorders from old technology VHS to a digital format that provides ease-of-use and lower cost installation," stated Joe Blankenship, Vice President Research at Source Capital in Scottsdale, AZ.
"Providing a self contained video and audio recording onto flash storage, conveniently mounted into the rear view mirror, along with wireless download, Digital Ally has made installation and operation of its DVM-500 product a natural replacement for bulky, hard to handle tape video recorders," continued Mr. Blankenship.
"Digital Ally has achieved less than 10% penetration of the U.S. law enforcement agencies with its products, providing a substantial revenue opportunity ahead. The Company's new event recorder for general transportation applications opens up a market that is several times the unit size of law
enforcement. Taxi cabs, school buses, delivery vehicles, mass transit, and other types of vehicles are just beginning to use event recorders for liability purposes in the event of an accident," stated Mr. Blankenship.
Our twelve-month price target for Digital Ally, Inc. common stock is $18.00 per share.
About Source Capital Group, Inc: Source Capital, headquartered in Westport, CT provides high-quality independent investment services, removed from the typical Wall Street environment, to individuals and institutions. Source: Source Capital Group, Inc. |
