Opportunities for ALOG are increasing, in ´firm's view, as some bottlenecks have been noted at domestic airports due to the increased volume of checked bags. They think this puts pressure on TSA to accelerate the already planned upgrade of systems currently installed as well as to acquire additional systems to improve the ability to detect explosives and increase screening speed. Furthermore, new technology like ALOG's COBRA could enable rapid screening of carry-on bags and certification could result in TSA purchases of the device earlier than they anticipate in our financial forecasts.
ALOG shares (which reflect $18.50+ of cash per share) are currently valued at an EV/F07E EBITDA multiple of about 8.5x.
Notablecalls: Not actionable but good to know category.