SoundHound AI (SOUN) has drawn strong Wall Street attention following its Q2 earnings release last week. This week, five-star-rated analyst Glenn G. Mattson at Ladenburg Thalmann upgraded the stock from ‘Hold’ to ‘Buy.’ Since the results, SOUN shares have surged nearly 50%.
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For context, SoundHound reported record Q2 revenue of $42.7 million, up 217% year-over-year, and raised its full-year outlook to $160–$178 million. The company not only saw steady revenue growth but also secured several major deals in its automotive segment. Moreover, it now has agreements with over 14,000 quick-serve restaurants, adding 1,000 last quarter, and its technology is used by seven of the top 20 chains.
Ladenburg Turns Bullish on SoundHound
Along with the upgrade, Mattson raised SoundHound’s price target to $16, up from $9.
Mattson explained that the company’s business model benefits from large upfront components in its deals, which can be uneven at times but offer meaningful upside potential. He highlighted that the company’s presence in the automotive sector is expanding, with three major U.S. automotive brands recently integrating SoundHound Chat AI into their vehicles.
According to Mattson, this product not only boosts user engagement but also reinforces SoundHound’s position as a technology leader in an increasingly competitive market. Management estimates that the in-car commerce opportunity for automakers could reach $35 billion annually.
Overall, Mattson continues to see SoundHound as a leader in the voice AI application space.
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 $15.3, suggesting a potential downside of 4.32% from the current level.
