Shares of SoundHound AI (SOUN) climbed 2% as of this writing on Thursday after a bullish analyst forecast predicted a solid upside. Yesterday, Scott Buck of H.C. Wainwright reaffirmed his Buy rating and reiterated his Street-high price target of $18 on SOUN, implying a 19.05% gain from current levels.
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For context, SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries. The company recently bought Interactions, an AI customer service and workflow firm, for $60 million in cash. The acquisition strengthens its Agentic AI leadership, expands enterprise services, and adds top brands, including tech, insurance, and Fortune 100 companies, to its customer base.
Here’s Why Wainwright Is Bullish on SOUN
Buck gave SOUN a Buy rating, citing the company’s recent strategic acquisition of Interactions Corp. He noted that the deal is expected to boost profitability quickly and create strong opportunities for cross-selling and upselling to Interactions’ existing customers.
Buck added that this acquisition follows the successful integration of Amelia, reinforcing confidence in management’s ability to replicate past successes and drive growth.
Wainwright Backs SOUN Valuation
Buck highlighted that SoundHound’s shares trade at a 32.0x EV/revenue multiple, reflecting a premium supported by the company’s strong backlog of subscriptions and bookings, which exceed $1 billion. He believes that the expected boost in revenue growth, along with the limited number of pure-play AI companies, justifies this valuation.
For context, SoundHound raised its full-year revenue forecast to $160–178 million, up from the previous estimate of $157–177 million.
Finally, Buck noted that although current estimates remain unchanged, the acquisition could result in upward revisions.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential downside of 1% from the current level.
