AudioEye price target raised to $20 from $10 at Craig-Hallum

Craig-Hallum raised the firm’s price target on AudioEye to $20 from $10 and keeps a Buy rating on the shares. The firm notes the accessibility software market has been a niche market in the U.S. – one Craig-Hallum would estimate to have been in the $300-$500M size, driven predominantly by litigation and the fear of litigation. Now, with a final rule soon to be published on the Federal Register that will apply to State and Local governments, website accessibility will be mandated. While some will use consultants, most will use software that answers the call for compliance and automated remediation. The estimated spend published in the DOJ’s economic analysis suggests up front implementation costs of $17B and $2B of annual operating and maintenance costs for testing and remediation, the firm adds. Craig-Hallum believes AudioEye will be well positioned to benefit from this rule.