SoundHound AI, Inc.: Positioned for Growth Amidst Economic Uncertainty with Strong Cash Reserves and Expanding Restaurant Business

H.C. Wainwright analyst Scott Buck reiterated a Buy rating on SoundHound AI, Inc Class A (SOUN – Research Report) today and set a price target of $18.00.

Scott Buck has given his Buy rating due to a combination of factors that highlight SoundHound AI, Inc.’s potential for growth and resilience in the face of macroeconomic challenges. Despite slightly missing revenue estimates for the first quarter of 2025, the company reaffirmed its revenue guidance for the year, which should alleviate investor concerns amidst economic uncertainties. The company’s ability to drive efficiencies and cost savings for small and medium businesses positions it well to capitalize on potential macro headwinds, potentially accelerating new business opportunities.
Additionally, SoundHound AI, Inc. has demonstrated promising growth in its restaurant business, which now spans over 13,000 locations, contributing significantly to annual recurring revenue. The company’s cash reserves of $246.0 million provide a strong foundation for pursuing strategic acquisitions, further supporting its growth trajectory. While acknowledging some macroeconomic uncertainty, Scott Buck remains optimistic about the company’s ability to grow organically and has adjusted the price target to $18, maintaining a Buy rating.

In another report released on May 9, Wedbush also maintained a Buy rating on the stock with a $15.00 price target.