Yes, and that is certainly one reason for the recent gloom. I tried to mention the same topic in the opening post, but I mixed up Ohio and Utah (thanks to the Lauri Markkanen documentary I was watching out of the corner of my eye).
For example, in Utah (correction: Ohio), systems already sold are waiting for deployment permits after the administration changed approval practices. Thus, the time gap between sales and cash flow can depend on factors other than the company’s own performance.
Political risk cannot be ignored, but based on RedEye’s old report, the general atmosphere seems to favor camera enforcement:
There has recently been a trend shift in the USA, where traffic fatalities are now increasing. This has caused many states to favor speed cameras more positively. Two major additions from the last months are Florida and California - states that substantially increase the market potential for Sensys Gatso.
The situation is new for the authorities as well, and speed bumps are even likely. Still, the situation is the same for all players, meaning the duration of deployment approvals doesn’t just affect SG’s equipment and services. Different levels of administration (state vs. county vs. city) come up with their own bureaucratic hurdles, just like here.
RedEye’s report is the usual bullish nonsense regarding target prices. Currently, we are at roughly the bear case (65 SEK) valuation. For this year, SG changed its provider of commissioned research.
RedEye/ 17.11.2023
In addition, a more detailed article on the situation in Iowa, with party politics in the background:
Some Republican lawmakers, as well as the ACLU of Iowa, have been trying to ban automated traffic enforcement for years. Some opponents of traffic cameras have accused cities of abusing automated traffic enforcement to boost local budgets.