H.C. Wainwright analyst Scott Buck reiterated a Buy rating on SoundHound AI, Inc Class A today and set a price target of $26.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight SoundHound AI, Inc.’s promising growth trajectory and potential for profitability. The company’s recent third-quarter results exceeded expectations, with revenue surpassing both the firm’s and the market’s estimates. This performance was bolstered by successful acquisitions and increased engagement with new clients across various sectors, including restaurants, financial services, healthcare, insurance, and retail.
Furthermore, SoundHound AI, Inc. has been expanding its partnerships, which could accelerate customer acquisition and revenue growth. Management’s outlook for 2026 suggests a significant revenue increase, potentially reaching growth rates of at least 40%, which is notably higher than current market projections. The anticipated improvement in gross margins and the path towards positive adjusted EBITDA indicate a potential profitability inflection point. These factors are expected to attract new investor interest, supporting the Buy rating and the $26 price target.