William Blair analyst Louie DiPalma has maintained their neutral stance on SSTI stock, giving a Hold rating on July 31.
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Louie DiPalma has given his Hold rating due to a combination of factors affecting SoundThinking Inc. While the company has shown potential with its reiterated full-year guidance and promising new technologies, such as the multi-microphone sensor platform and integration with drone-as-first-responder platforms, there are underlying concerns. The revenue decline of 4% year-over-year, primarily due to the loss of the Chicago contract, and the drop in gross margin from 60% to 53% are notable challenges.
Despite these setbacks, there are positive developments, including expected catch-up revenue in the third quarter and growing demand for the PlateRanger solution and SafePointe in the healthcare sector. However, until these opportunities translate into consistent financial performance, the stock is likely to remain range-bound. Thus, the Hold rating reflects a cautious optimism, balancing the potential for future growth against current financial uncertainties.
According to TipRanks, DiPalma is an analyst with an average return of -3.8% and a 61.76% success rate. DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Caci International, and Gilat.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $12.50 price target.