Craig-Hallum sees ‘equity impairment,’ downgrades Veritone to Sell

Craig-Hallum downgraded Veritone to Sell from Hold with a price target of 50c, down from $3. With pro-forma revenue declining 22% year-over-year in Q3 and the company lowering its guidance for the year again, the firm says Veritone is facing worse than expected revenue declines. Negative organic growth, combined with continued cash burn and new high cost debt, creates “an equity impairment situation,” contends the analyst, who adds that with the company adding debt from a lender of last resort the firm sees “a realistic scenario where the equity value is not much above the debt load.”