Shares of Veritone jumped 15.5% on Friday after the company won a $1.3 million subcontract from the US Air Force (USAF) to enhance satellite imagery analysis.
The subcontract forms part of the Phase II contract awarded by the US Air Force’s innovation unit’s (AFWERX) under the Small Business Innovation Research (SBIR) program to prime contractor alYnmnt.
Under the terms of the agreement, the USAF will use Veritone’s (VERI) aiWARE artificial intelligence (AI) operating system for overhead imagery analysis. The USAF expects that “aiWARE will significantly increase the speed, accuracy, throughput and productivity of imagery analysts by pre-processing intelligence imagery and video with object detection engines,” Veritone said in a statement.
Jon Gacek at Veritone said, “This is a massive win for Veritone aiWARE. We expect the Phase II project to be a big success for our country and its national security.” (See VERI stock analysis on TipRanks).
On Sept. 18, Northland Securities analyst Michael Latimore reiterated a Buy rating on the stock with a price target of $15 (55.9% upside potential). In his note to investors, Latimore said, “We believe this is likely VERI’s largest video deal, and another, bigger phase could emerge too.”
Currently, the Street has a cautiously optimistic outlook on the stock, with a Moderate Buy analyst consensus. With shares up over 286% year-to-date, the average analyst price target of $16 implies further upside potential of 66.3% from current levels.
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