Earlier this week, Veritone Inc (NASDAQ:VERI) shares knocked down nearly 45% after short-seller Citron Research predicted shares would drop back to $20. Citron warned, “Veritone is not artificial intelligence, more like natural stupidity.”
Today, Roth Capital analyst Brian Alger came out with reasonable arguments to defend the company with: “We believe the data scientists who built and are refining AI Ware’s Conductor, would strongly disagree with this statement. Based on what we have seen over the past three weeks, we have no doubt that what Veritone is delivering is unparalleled and transforming businesses through the orchestration of third party ANI engines.”
As such, Alger reiterates a Buy rating on Veritone shares, and boosts his price target to $62 (from $13), which represents a potential upside of 34% from where the stock is currently trading. (To watch Alger’s track record, click here). The analyst explained the move noting, “Over the next six months, we see tremendous opportunity for VERI to not only execute to its projected plan, but potentially exceed it. Thus, we are adjusting our price target to reflect what we anticipate will be at least $40 million in acquired SaaS revenue by the end of this year as well as the premium multiple warranted by such transformational technology and growth.”
The analyst concluded, “Over the course of the past few weeks we have arranged and attended numerous investor meetings. Our conclusion is that Veritone is the real deal and is executing to the strategy first laid out to us in early 2016. With $20-$60 million in SaaS revenue targeted for M&A before the end of 2017, we see transformational growth in the business coming.”
Veritone shares reacted to Alger’s bullish approach, rising nearly 26% in Friday’s trading session.
