As previously reported, Craig-Hallum downgraded SoundThinking (SSTI) to Hold from Buy with a $10 price target The firm notes the company delivered a wide Q3 miss while guiding down FY25. The downgrade, Craig-Hallum says, is based on several key factors, including persistent misses and guidance cuts since FY22; adjusted EBITDA has been stuck in the $14M to $16M range since FY22 despite over $20M of revenue growth; contracts on core ShotSpotter business have stalled with key extensions delayed; gross margin has fallen as cost structure has increased due to technology investments and acquisitions that have not yielded adequate returns.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SSTI:
- SoundThinking price target lowered to $17 from $20 at Northland
- SoundThinking price target lowered to $14 from $19 at Lake Street
- SoundThinking Inc. Receives Hold Rating Amid Revenue Decline and Future Growth Prospects
- SoundThinking price target lowered to $16 from $20 at Cantor Fitzgerald
- SoundThinking downgraded to Hold from Buy at Craig-Hallum