Veritone Inc (VERI)

[GBR]

On Thursday, Veritone Inc . (NASDAQ:VERI) received an upgrade in its stock rating from Roth/MKM, moving from Sell to Neutral. The firm also adjusted the price target for Veritone, setting it at $1.85, a decrease from the previous target of $2.00.

The upgrade is based on the expectation that Veritone will begin to see a return to growth by the middle of 2024. This projection is tied to easing comparables in the fourth quarter and anticipated improvements following a period of lower hiring by Amazon (NASDAQ:AMZN). Roth/MKM notes that Veritone could start gaining traction and return to growth on a like-for-like basis by mid-2024.

Roth/MKM cited several factors contributing to the improved outlook for Veritone. These include a downsized cost structure, improved liquidity, and the potential for cross-selling opportunities. The firm believes these elements collectively suggest that the downside risk for Veritone has been mitigated, warranting the upgrade to a Neutral rating.

The analyst's commentary highlighted that while there are still challenges ahead for Veritone, the possibility of growth returning and the company's strategic adjustments provide a more stable foundation.

"Further optimism depends on enhanced revenue visibility and successful product adoption," wrote the analyst.

Veritone's future performance is now under watch, with the market anticipating the company's progress towards achieving the growth and stability outlined by Roth/MKM. The firm's revised price target and stock rating reflect a cautious but improved outlook for the artificial intelligence technology company.