Veritone downgraded to Underperform at BofA on hiring segment risks

As previously reported, BofA analyst Koji Ikeda downgraded Veritone to Underperform from Neutral with a price target of $5, down from $8. The firm sees potential medium-term risks to the company’s hiring ad-tech offering, which it notes accounted for 38% of revenue in 2022, due to the macro environment. For this segment, it forecasts declining revenue in 2023, BofA noted. In addition, BofA cites Veritone’s "subscale and lumpy" SaaS revenue and what it sees as relatively few catalysts over the next 12-18 months to drive the valuation multiple higher.