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Shares of ID Systems (IDSY) Get a Boost From Cowen Upgrade

January 10, 2012 11:16 AM EST
IDSY Hot Sheet
Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 1
Shares of ID Systems (Nasdaq: IDSY) are trading higher this morning on light volume. Cowen may have contributed to today's 4.4% move up, after the firm raised its rating on shares from Neutral to Outperform.

IDSY trades on light volume and the company's current market cap is $63 mln.

Recent Positives: The company has topped estimates two of the last three quarters, and revenues beat consensus estimates all three times.

Secondly, on August 23, 2011, Avis Budget Group, Inc. (Nasdaq: CAR) and I.D. Systems announced the execution of an agreement to deploy I.D. Systems' proprietary wireless vehicle management systems in Avis Budget's vehicle rental fleet.

The first phase of expanded system deployment, which will put I.D. Systems' technology into more than 25,000 Avis Budget vehicles and facilities in portions of the United States and Canada, is valued at $14 million over five years.

In connection with the agreement, Avis Budget purchased 1,000,000 shares of I.D. Systems common stock at a price of $4.60 per share, based on the 20-day average share price as of August 22, 2011. In addition, Avis Budget received warrants to purchase up to 600,000 additional shares of I.D. Systems common stock at a price of $10.00 per share, with 100,000 warrants vesting at contract signing and 500,000 warrants vesting if and when Avis Budget exercises its option to substantially expand system deployment.


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