SoundThinking stock holds $19 target, Market Outperform

Published 17/03/2025, 10:28
SoundThinking stock holds $19 target, Market Outperform

On Monday, Citizens JMP reiterated its Market Outperform rating and $19.00 price target for SoundThinking (NASDAQ: SSTI), maintaining a positive outlook on the company’s stock. According to InvestingPro data, analyst targets range from $18 to $30, suggesting significant upside potential. Analysts at Citizens JMP expressed continued confidence in SoundThinking after a series of virtual investor meetings with the company’s CEO Ralph Clark and CFO Alan Stewart, which took place on Thursday. The stock has demonstrated strong performance, with an approximate 16% increase year-to-date (YTD), outpacing the Russell 3000’s roughly 4.5% decline over the same period. With a market capitalization of $192 million and a beta of 1.4, InvestingPro analysis shows the company maintains a strong balance sheet with more cash than debt, though it currently trades at a high EBITDA multiple of 70x.

The meetings provided several key insights into SoundThinking’s business strategy and market potential. One significant point of discussion was the company’s opportunity to regain its footing in the Chicago market. Analysts also highlighted the promising margin profile across SoundThinking’s SafetySmart solutions, with InvestingPro data showing a healthy gross profit margin of 57.3% and revenue growth of 10% in the last twelve months. For deeper insights into SoundThinking’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Further topics covered during the investor sessions included SoundThinking’s approach to mergers and acquisitions (M&A), which forms a core part of its growth strategy. The company’s philosophy and strategic considerations in this area were outlined, indicating an intentional and thoughtful approach to expanding its business.

International expansion was another area of focus, with analysts noting that SoundThinking’s foray into global markets is expected to yield margin upside. This international growth aligns with the company’s broader objectives and is anticipated to contribute positively to its financial performance.

Lastly, the analysts discussed the potential of SafePointe™, one of SoundThinking’s offerings, and the emerging tailwinds that could support its growth. This product, along with the company’s other initiatives, forms part of a broader strategy that Citizens JMP believes will continue to drive SoundThinking’s market performance and justify the reaffirmed Market Outperform rating and price target.

In other recent news, SoundThinking reported its fourth-quarter 2024 earnings, which did not meet analyst expectations, with revenue at $23.4 million, falling short of the anticipated $26.92 million. The shortfall was largely due to a $3.5 million impact from delayed New York Police Department contract renewals. Despite this, SoundThinking has raised its financial outlook for 2025, projecting a 10% year-over-year revenue growth and margin improvements. In terms of analyst ratings, Craig-Hallum raised the price target for SoundThinking to $27, maintaining a Buy rating, while Cantor Fitzgerald kept an Overweight rating with a $20 target. Meanwhile, JMP Securities reiterated a Market Outperform rating with a $19 target, citing the company’s strong market position and growth potential. Additionally, SoundThinking has expanded its ShotSpotter technology to Niterói, Brazil, under a three-year contract valued at $1.7 million. This move marks the company’s continued international expansion, aiming to enhance public safety through advanced technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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