SoundHound AI (SOUN) has grabbed significant attention on Wall Street following its impressive Q2 results earlier this month. Since then, SOUN stock has gained over 45%. Meanwhile, analysts have responded by raising price targets and upgrading the stock to Buy, reflecting growing confidence in SoundHound’s growth prospects. However, the near-term upside appears limited following the recent surge in SOUN’s stock price.
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In Q2, SoundHound reported record revenue of $42.7 million, up 217% year-over-year. The company also raised its full-year revenue forecast to $160 million–$178 million, up from the prior range of $157 million–$177 million.
H.C. Wainwright Stays Bullish on SOUN Stock
Recently, analyst Scott Buck from H.C. Wainwright reiterated his Buy rating on SOUN stock, keeping his price target intact at $18. Buck cited strong financial results as a key reason for his Buy rating. He highlighted that Q2’s success was driven by recent acquisitions and solid growth, positioning SoundHound for continued progress.
He also praised the company’s full-year revenue forecast for 2025, which projects about 100% year-over-year growth, based on the midpoint of their guidance range. Buck believes that with plans for improved profit margins, positive adjusted EBITDA by Q4 2025, and a strong balance sheet, his Buy rating is well justified. Additionally, he asserts that the focus on new contracts and expanding its customer base supports a positive outlook for the stock.
Meanwhile, five-star-rated analyst Glenn G. Mattson at Ladenburg Thalmann & Co. upgraded his rating to Buy. Mattson also raised his price target from $9 to $16.
Is SOUN a Good Stock to 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 $15.29, suggesting a potential downside of 3.11% from the current level.
