SoundHound AI (SOUN) has captured strong attention from Wall Street after delivering impressive Q2 results. Analysts have responded by raising price targets and upgrading the stock to Buy, reflecting growing confidence in SoundHound’s growth prospects. Meanwhile, SOUN stock surged 26% on Friday after the earnings release but was down 2% in pre-market trading on Monday.
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In Q2, SoundHound reported a record revenue of $42.7 million, soaring 217% year-over-year. Looking ahead, the company raised its full-year revenue forecast to $160 million–$178 million, up from the previous range of $157 million–$177 million.
Analysts Weigh In on SOUN Stock
Following the results, four-star-rated analyst Michael Latimore at Northland Securities upgraded SOUN stock from Hold to Buy and raised his price target from $8 to $14.5. Latimore pointed out that SoundHound showed a return to organic growth in Q2 and seems to have a strong pipeline for the rest of the year. He expects the company to grow 36% in the second half, with growth reaching 52% in Q4. Latimore’s price target implies an upside of 7% from current levels.
Likewise, Mizuho Securities upgraded SOUN from Hold to Buy and raised its price target to $14.50.
Meanwhile, five-star-rated analyst Gil Luria at D.A. Davidson raised his price target by 50% to $15 with a Buy rating. Luria highlighted that SoundHound is landing major new clients like top carmakers and restaurants, boosting its pipeline. He sees the company growing in a big, untapped market and making steady progress toward profitability.
On the other hand, Piper Sandler’s four-star analyst James Fish maintained a Hold rating and a $12 price target. However, he noted the company’s improved growth and profitability as a positive sign.
Is SOUN a Good Stock to Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with four Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $14.67, suggesting a potential upside of 8.27% from the current level.
