SoundHound price target lowered to $4.20 from $6.20 at Cantor Fitzgerald

Cantor Fitzgerald analyst Brett Knoblauch lowered the firm’s price target on SoundHound to $4.20 from $6.20 and keeps an Overweight rating on the shares following the Q2 results. The firm continues to believe that Pillar 2 will be a more important growth driver beginning in 2025, and until then, growth will be primarily driven by product royalties, which mainly come from its ~20 automotive customers that are deploying SoundHound’s technology within their new vehicles, in addition to one-time licensing fees that it receives from completing proof-of-concept work for prospective customers, the analyst tells investors in a research note.