Deep research in a shallow world
Rekor (REKR) is a provider of automatic license plate recognition (ALPR) technology which can be applied to toll roads, parking enforcement, and speed limit and red light monitoring, among other things. On May 10 th , REKR saw its shares drop almost 30% which was attributed to “ speculation that a Texas bill for uninsured vehicle enforcement [using REKR technology] was likely dead ”. It is our view that this is just the tip of the iceberg when it comes to REKR. Today, we show investors the following:
As a result of the above and the implications to REKR’s revenue base, we assign a $3.71 price target to REKR stock, down ~68% from current levels.