William Blair analyst Louie DiPalma has maintained their bullish stance on REKR stock, giving a Buy rating on October 8.
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Louie DiPalma has given his Buy rating due to a combination of factors including Rekor Systems’ impressive financial performance and strategic contract wins. The company recently preannounced its third-quarter results, highlighting record revenue figures that surpassed market expectations. With anticipated revenue between $13.9 and $14.3 million, Rekor is set to achieve its highest quarterly revenue to date, significantly exceeding the consensus estimate of $12.5 million. Additionally, the adjusted EBITDA loss is projected to be narrower than expected, indicating improved financial health.
Another key factor influencing DiPalma’s rating is Rekor’s recent contract achievements, particularly with the Georgia Department of Transportation. This contract, which utilizes Rekor’s Discover platform, is expected to generate substantial revenue over the coming years, with potential earnings of up to $100 million. Furthermore, the company secured a contract with the Texas Department of Transportation, further solidifying its market position and growth prospects. These developments underscore Rekor’s strategic advancements and potential for long-term success, justifying the Buy rating.
According to TipRanks, DiPalma is a 4-star analyst with an average return of 9.0% and a 63.54% success rate. DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Rekor Systems, and AST SpaceMobile.
In another report released on October 8, Northland Securities also maintained a Buy rating on the stock with a $4.00 price target.