Sidoti seems to be giving us a warning about possible lower prices. Others here may disagree and dislike the fact that I'm mentioning it but just by reviewing their web site, they seem to be under no pressure to do anything but provide research.
They could, however be following too many companies. They may have gotten hit with the recent crises with ITI's accounting and they may be making a quick call that is not based on deep knowledge of the intrinsic value of Iteris. I was able to see that they had over two full web pages of companies they follow that start with "I".
In any case, we have another view. It says that the company is worth $2.50 a share. I'm not a CFA by any means but I'm with most here who look a the financials and probably agree with that assessment.
This hedge fund is open about having a stake in ITI. So there is bias there to come out in support of their investment. But this also means they have deep knowledge of the value of the company. Hence they say, if it stays below $1.50 there may be a buy out at a more realistic price.
So for now,the multi-element contract, accounting factor, plus the claim of buyers waiting for M&A and the claim of an intrinsic value of $2.50 makes the stock remind me of Dos Equis and "the most interesting man" commercial. Where ever the bottom is, it may be an exciting, once in a decade entry point.