SoundHound (SOUN) shares are up almost 30% at the time of writing after the AI company reported strong second-quarter results that beat expectations. As a result, Wall Street analysts responded positively, with Wedbush raising its price target from $15 to $16 and maintaining a Buy rating. Indeed, five-star analyst Daniel Ives said that SoundHound brought in $42.7 million in revenue, which was up 217% from last year and well above the $32.8 million estimate, thanks to new customer deals and more cross-selling across different industries. Its Amelia AI platform also played a key role in growing sales.
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Looking ahead, SoundHound raised its 2025 guidance slightly to a range of $160 million to $178 million, up from $157 million to $177 million. Interestingly, Wedbush believes that this new forecast is still conservative because demand is strong and partnerships with channel partners continue to grow. Ives called this a big step forward for SoundHound by saying that the company is an underappreciated AI leader that’s gaining ground across multiple industries. However, other analysts had a more cautious view.
More specifically, Piper Sandler’s 4.5-star analyst, James Fish, kept a Hold rating and a $12 price target despite saying it was encouraging to see improved growth and profitability. Cantor also maintained a Hold rating with an $8.50 target, even though it highlighted SoundHound’s organic growth, a win in China’s auto sector, and better engagement with users. Nevertheless, Cantor, led by four-star analyst Thomas Blakey, noted that there is some uncertainty when it comes to deal closings for the second half of the year and that said trade pressures may slightly impact production.
Is SOUN Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SOUN stock based on four Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SOUN price target of $12.43 per share implies 10.9% downside risk.
