- REKR is a provider of automatic license plate recognition (ALPR) technology whose stock fell precipitously over a lack of legislative progress on the company’s Texas ALPR program.
- Oklahoma government budgets imply that REKR’s much vaunted UVED program is a sub $2MM revenue opportunity – almost 96% less than the >$40MM in revenue intimated by Rekor’s CEO.
- Government filings showing “Rekor’s largest state and local clients” and our searches of other contracts imply annual revenues far below what it would take to meet sell-side expectations.
- We found evidence that REKR is unlikely to win other states – ALPR bills have failed in several states, including NY and FL, which REKR has touted as potential business opportunities.
- Our work suggests that REKR will be unable to reach sell-side revenue estimates, and we assign a $3.71 price target to the stock, down ~68% from current levels.
For further details see:
Rekor Systems: Government Documents Do Not Support Investor Expectations