ShotSpotter downgraded at Craig-Hallum after Chicago mayor’s ‘surprise win’

As previously reported, Craig-Hallum analyst Jeremy Hamblin downgraded ShotSpotter to Hold from Buy with a price target of $30, down from $48, after Brandon Johnson was elected as the next mayor of Chicago. Prior to his "surprise win," the progressive Democrat made ending the ShotSpotter contract a key point of his election campaign, notes the firm, which points out that the city of Chicago is ShotSpotter’s second largest customer, accounting for about 10% of revenue in FY22. The firm sees "significant risk" the contract, which is up for renewal in less than one year, will be terminated within six months and while it notes that the company has diversified its business over the past few years, it is concerned that investors will be worried about the potential for other Tier 1 cities to terminate the service.