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Investing.com - H.C. Wainwright raised its price target on Veritone (NASDAQ:VERI) to $9.00 from $6.00 on Monday, while maintaining a Buy rating on the stock, citing strong VDR bookings growth. According to InvestingPro data, the stock currently trades at $6.25, with analyst targets ranging from $3 to $25.
The firm noted that Veritone shares traded 31.0% higher last week, significantly outperforming the Russell 2000 Index’s 2.4% increase, following a corporate update on VDR (Veritone Data Representations) bookings. InvestingPro data shows the stock has delivered a remarkable 189% return over the past six months, though investors should note its high volatility with a beta of 3.24. The company has secured nearly $40.0 million in VDR bookings, representing approximately 100.0% growth from August levels and a substantial increase from $10.0 million in June.
H.C. Wainwright highlighted that Veritone’s VDR solution is being deployed across an expanding roster of hyperscalers and venture-backed model developers. While specific names were not provided in the update, the company has previously included Amazon and NVIDIA as partners in investor presentations.
Following the strong share performance, Veritone announced a capital raise with gross proceeds of $75.0 million, which the firm believes will likely be used to pay down approximately $130.0 million of outstanding debt, potentially lowering cash outflows and accelerating the path toward cash flow break-even. InvestingPro analysis indicates the company’s financial health score is currently weak at 1.71, with total debt standing at $117.65 million.
Based on these developments, H.C. Wainwright increased its 2026 revenue forecast for Veritone to $135.5 million and raised its valuation multiple to 5.0x 2026 revenue, while noting this remains below high-quality peers, suggesting potential future upside if the company continues to execute. According to InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Get access to detailed valuation metrics and 10+ additional ProTips for Veritone with an InvestingPro subscription.
In other recent news, Veritone, Inc. reported a 30.5% increase in third-quarter revenue, with figures ranging between $28.5 million and $28.7 million. This growth is attributed to significant contract wins for its Veritone Data Refinery product, which has doubled its pipeline and bookings to nearly $40 million since August. The company has also entered into a securities purchase agreement for a registered direct offering of approximately 12.9 million shares. Additionally, Veritone announced a new licensing agreement with ESPN, allowing the sports network to monetize its NCAA Division I Championships audio archives. This agreement provides content creators with access to a wide range of audio content through Veritone’s platform. Furthermore, Veritone’s recent developments include major AI data contract wins, contributing to the company’s revenue growth. Analyst reports, such as those from Investing.com, highlight the company’s expanding roster of partnerships with hyperscalers and model developers.
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