Shares of SoundHound AI (SOUN) again came into the spotlight after five-star-rated analyst Brian Schwartz at Oppenheimer praised the voice-AI company for its potential as a “durable growth compounder.” Notably, Schwartz began his coverage of SOUN stock with a Hold rating but did not set a price target. As of this writing, SOUN stock has gained 1.5% in pre-market trading on Monday.
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For context, SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries.
Analyst Praises for Long-Term Growth Potential
Schwartz believes SoundHound’s conversational AI platform is strong and trusted by customers, who see it as a leader in speech-to-meaning technology, data analysis, and overall innovation. Additionally, he highlighted the company’s advantages in the Voice AI market, including a clear value proposition, a healthy backlog compared to current revenue, and strong management.
Notably, Schwartz is a five-star analyst on TipRanks, ranking #732 out of 10,026 analysts tracked. He boasts a 52% success rate and an average return per rating of 11.10%.
Oppenheimer Opted for Hold-over-Buy Rating
Despite the long-term potential, Schwartz opted for a Hold rating on SOUN instead of a Buy. He cautioned that new competitors and the speed at which SoundHound is growing into current and new markets might not be fast enough to match the high expectations investors have.
Right now, the stock is valued at 26 times its expected 2026 revenue, which is very optimistic, and he thinks the growth may not fully justify that price.
Overall, SoundHound’s valuation remains an area of concern among several experts. Critics worry that competition and the pace of expanding into new markets may not keep up with these optimistic expectations, making the stock appear expensive relative to its current and near-term performance. SOUN stock has gained nearly 200% over the last 12 months.
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 upside of 8.5% from the current level.
