Scott Buck, an analyst from H.C. Wainwright, reiterated the Buy rating on SoundHound AI, Inc Class A (SOUN – Research Report). The associated price target was raised to $8.00.
Scott Buck has given his Buy rating due to a combination of factors including SoundHound AI, Inc.’s impressive revenue performance and optimistic future outlook. The company reported third quarter 2024 revenue of $25.1 million, which surpassed the forecast of $22.6 million, driven by both organic demand and successful mergers and acquisitions. Management has subsequently increased the revenue outlook for the fourth quarter of 2024 and for 2025, expecting a substantial increase to between $155 million and $175 million.
Furthermore, SoundHound AI’s balance sheet management has also contributed to the positive rating. With a strong cash position of $135.6 million and minimal debt, the company retains flexibility to pursue growth initiatives. Despite a recent drop in stock price, the company is expected to continue executing its strategy, which includes expanding revenue and improving margins. The ongoing demand for AI companies is likely to maintain investor interest, reinforcing the Buy rating and the increased price target of $8.
Buck covers the Technology sector, focusing on stocks such as BlackSky Technology, Lightpath Technologies, and Widepoint. According to TipRanks, Buck has an average return of -11.2% and a 33.20% success rate on recommended stocks.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $10.00 price target.
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SoundHound AI, Inc Class A (SOUN) Company Description:
SoundHound AI Inc is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers.
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