UPDATE: JMP Securities Downgrades ShotSpotter (SSTI) to Market Perform

(Updated - November 10, 2020 6:13 AM EST)

(updating comment)

JMP Securities analyst Joseph Osha downgraded ShotSpotter (NASDAQ: SSTI) from Market Outperform to Market Perform.

The analyst comments "ShotSpotter reported revenue and earnings numbers that were in line with our forecasts, but the rate at which the company added new coverage miles for its Flex product substantially undershot our expectations. Additionally, SSTI is beginning to see the impact of budgetary pressures within its customer base, the result being that cancellations outnumbered additions for the quarter, driving a reduction of 3 square miles in total coverage to 758. To be fair, some of the business that SSTI had been hoping to close in the third quarter has slipped to the fourth quarter, and our model shows net additions of 20 square miles for the quarter. Even so, it is becoming apparent that the combination of attrition and challenges in winning new business is driving slower growth in the core business than we had expected. We are downgrading our investment rating to Market Perform from Market Outperform - at 34x our NTM EBITDA and 7x our NTM revenue estimates, we think SSTI appears fairly valued."

For an analyst ratings summary and ratings history on ShotSpotter click here. For more ratings news on ShotSpotter click here.

Shares of ShotSpotter closed at $35.67 yesterday.

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