SoundHound AI (SOUN) shares are up more than 5% in pre-market trading on Monday. The stock, which dipped last week despite delivering stronger-than-expected Q3 results, has rebounded following renewed Wall Street support. Notably, H.C. Wainwright’s four-star analyst Scott Buck reaffirmed his Buy rating on SOUN on Friday, projecting an upside potential of over 80% for the stock.
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For context, SoundHound AI focuses on voice recognition and natural language processing, delivering AI-driven solutions across multiple industries. The company reported Q3 revenue of $42 million, up 68% from a year ago, beating the $40.5 million analysts had expected. Meanwhile, the company posted an adjusted net loss of $0.03 per share, better than last year’s $0.04 loss.
Wainwright Stays Bullish on SOUN Stock
Wainwright’s Buck maintained his Buy rating on SOUN, citing strong growth potential and improving profitability. He further noted that the company’s Q3 results beat expectations, driven by recent acquisitions and growing demand from clients in sectors like restaurants, finance, healthcare, insurance, and retail.
Buck highlighted that management expects revenue to grow by at least 40% by 2026, outpacing market forecasts. Buck believes SoundHound AI is nearing profitability, supported by improving margins and a clear path to positive EBITDA, key reasons behind his Buy rating and Street-high $26 price target.
Notably, SoundHound raised its full-year revenue forecast to $165–$180 million, above its previous $160–$178 million estimate.
Piper Sandler Weighs In on SOUN Stock
Following the results, Piper Sandler’s top-rated analyst James Fish raised his price target on SOUN to $15 from $12, maintaining a Hold rating. Fish noted that SoundHound’s earnings slightly beat expectations, highlighted by a major IoT deal that shows growing traction in the APAC region.
On the other hand, he pointed out that the company’s Q4 organic growth guidance was implicitly lowered, tempering near-term optimism.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with three Buys and four Holds assigned in the last three months. The average SoundHound stock price target is $17.0, suggesting a potential upside of 20.23% from the current level.
