Analyst Trevor J. Walsh of JMP Securities reiterated a Buy rating on SoundThinking Inc (SSTI – Research Report), retaining the price target of $19.00.
Trevor J. Walsh has given his Buy rating due to a combination of factors influencing SoundThinking Inc’s performance and future prospects. Despite the company’s F4Q24 results falling short of expectations due to delayed contract renewals with the New York City Police Department, the management’s proactive measures and positive outlook for FY25 have bolstered confidence. The delayed revenue from these contracts is expected to generate significant profit once recognized, contributing to a strong gross margin in the upcoming quarters.
Additionally, SoundThinking’s management has raised its revenue guidance for FY25, surpassing consensus estimates, and has also increased its implied adjusted EBITDA forecast. The company’s strategic approach to potential challenges, such as those posed by the Department of Government Efficiency’s cost-cutting initiatives, further supports the Buy rating. By assisting customers in securing alternative funding sources, SoundThinking is mitigating risks associated with changes in government funding, thus ensuring stability and growth in its operations.
In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $27.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SSTI in relation to earlier this year.