Shotspotter stumbles as top-rated analyst moves to sidelines

Soundthinking

15/07/2019 15:32

** Shotspotter Inc  SSTI.O  dropping 9.7% to $38.99 on Mon after
Northland Capital Markets downgrades seller of gunshot detection
systems to "market perform", saying potential customer churn
heightens downside risk
    ** Northland cuts PT by $13 to $47, 10% below Street median
(Refinitiv data)
    ** Analyst Tim Klasell garners 5 of 5 stars from Refinitiv
StarMine for both estimate accuracy and recommendation
performance on SSTI
    ** Klasell points to media reports in early Jul that confirm
Sacramento County, CA, will be ending its Spotshotter program
due to budget cuts
    ** Says Sacramento is +$1 mln customer, and that system will
remain live and contribute revenue until contract expires in
2020; adds media reports also suggest Louisville, KY ($400K
customer), considering cutting program also as part of budget
cuts
    ** On May 10, SSTI plunged 19% after co blamed 2019 forecast
cut on loss of a major customer and delays in contract
negotiations with two potential customers  urn:newsml:reuters.com:*:nL3N22M4AP
 urn:newsml:reuters.com:*:nGNX7N51SJ
    ** 7 of 10 covering analysts rate SSTI "buy" or stronger,
rest have "hold" equivalent
    ** With today's decline, SSTI carving YTD gain to 24%.
Still, stock is more than triple its Jun 2017 IPO price of $11

 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017
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