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Investing.com - Aegis Capital has lowered its price target on Digital Ally (NASDAQ:DGLY) to $4.00 from $11.00 while maintaining a Buy rating on the stock. The company, currently valued at just under $3 million with annual revenue of $18.6 million, appears undervalued according to InvestingPro analysis.
The adjustment reflects the revised share count resulting from Digital Ally’s recent reverse stock split and capital raising activities, according to Aegis Capital.
The new $4 price target is derived by applying an Enterprise Value/2025E Revenue multiple of 0.5x to Digital Ally’s financials.
This valuation represents a discount to the S&P 500’s overall market multiple of 3x, which Aegis attributes to Digital Ally’s ongoing operating losses.
Despite the significantly reduced price target, Aegis Capital has maintained its Buy rating on Digital Ally stock.
In other recent news, Digital Ally, Inc. has secured exclusive global distribution rights for nicotine cessation products through a Master Distribution Agreement with Redwood (NYSE:RWT) Scientific Technologies. This agreement includes Redwood’s oral thin-film products like TBX-Free for cigarette smokers and TBX Vape-Free for vape users. Additionally, Digital Ally has successfully reduced its order backlog to $1.7 million, down from $2.2 million at the end of the first quarter of 2025, while securing seven new contracts valued at over $800,000. In a significant move, Digital Ally announced a 1-for-100 reverse stock split of its common stock, effective May 22, 2025. This decision was approved by the company’s stockholders earlier in May and involved converting every one hundred shares into one share, without altering the total number of authorized shares. The reverse stock split took effect with the opening of the market on May 23, 2025, under a new CUSIP number. These developments reflect strategic steps by Digital Ally to strengthen its market position and streamline its operations.
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