Analysts Name SoundHound AI an ‘Early Leader’ In $30B Conversational AI Sector

Piper Sandler analysts James E. Fish and Caden Dahl named SoundHound AI (SOUN) an “early leader” in the conversational AI sector. That’s great news for SOUN stock as the firm expects “a $30B serviceable addressable market by 2027.” SoundHound AI has already penetrated this market with its Dynamic Drive-Thru AI service assisting Church’s Texas Chicken and White Castle customers with orders.

Piper Sandler’s analysts had more positive things to say about SoundHound AI, including its change to a subscription-based model and an over 10% margin boost due to synergies from its Amelia acquisition. However, they warned of potential headwinds from its dealings in the automotive industry.

The Piper Sandler analysts praised SOUN stock as they initiated coverage of the shares. This comes with an Overweight rating and $12 price target, representing a potential 15.6% upside for the shares.

SOUN Stock Movement Today

SoundHound AI stock soared 10.02% on Tuesday morning following the new analyst coverage. That’s a welcome change from its year-to-date drop of 46.88%, but the stock remains up 95.11% over the past 52 weeks.

SOUN stock also saw decent trading activity today with more than 7 million shares traded as of this writing. For comparison, the company’s three-month daily average trading volume is 28.3 million shares. SoundHound AI could surpass that average today if retail traders continue to show interest in the stock after today’s bullish analyst coverage.

Is SoundHound AI Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts ‘consensus rating for SoundHound AI is Moderate Buy, based on three Buy and three Hold ratings over the last three months. With that comes an average SOUN stock price target of $11.42, representing a potential 6.88% upside for the shares.

See more SOUN stock analyst ratings