William Blair analyst Louie DiPalma has maintained their neutral stance on SSTI stock, giving a Hold rating on November 5.
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Louie DiPalma has given his Hold rating due to a combination of factors impacting SoundThinking Inc. The company reported third-quarter results that fell short of expectations, with revenue declining by 4% year-over-year and adjusted EBITDA margins contracting by 320 basis points. These results were primarily influenced by delays in contract deployments, which have led to a downward revision of the company’s 2025 guidance.
Despite these challenges, management remains optimistic about future growth, anticipating accelerated revenue and profitability in 2026 and beyond. They highlighted potential opportunities in the healthcare sector, driven by California’s AB 2975 mandate, which could significantly expand the market for their SafePointe product. Additionally, similar legislative developments in other states like Maryland and New Jersey could further bolster demand. However, given the current financial performance and revised guidance, a Hold rating seems prudent until more consistent growth is realized.
DiPalma covers the Technology sector, focusing on stocks such as AST SpaceMobile, Gilat, and ViaSat. According to TipRanks, DiPalma has an average return of 9.2% and a 59.16% success rate on recommended stocks.
In another report released on November 5, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.50 price target.