Citizens maintains SoundThinking stock rating after Transom buyout
Citizens has maintained its Market Perform rating for SoundThinking shares (NASDAQ:SSTI) after the company's acquisition by Transom Capital Group was announced. SoundThinking agreed to a definitive deal with Transom, promising a $8.00 per share cash offer and an additional $3.00 per share contingent value right. Analyst Trevor Walsh kept the Market Perform rating following the announcement, as the stock rose 50% that day.
The acquisition values SoundThinking at around $72 million in market capitalization, though shares are still down about 32% year-to-date. SoundThinking's year-over-year revenue dropped 7.7%, with adjusted EBITDA turning positive at $1.2 million. The company lowered its full-year revenue forecast to $99 million to $100 million, citing weaker results.
Other analysts, including Roth/MKM and Cantor Fitzgerald, have also downgraded the stock due to the revenue miss. Despite the challenges, InvestingPro data suggests the stock remains undervalued.
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