SoundHound AI Inc. has seen its stock price target raised by Wedbush from $10.00 to $22.00. The firm maintains an Outperform rating on the stock.
SoundHound AI is trading at $16.91 and has shown a 697% year-to-date return. The new target reflects SoundHound’s strong performance and growing demand for its voice AI solutions as it moves into next year. The company reported a 76% revenue growth over the past twelve months.
Data analysis shows that SoundHound is well-positioned to benefit from increasing AI spending in the coming years. SoundHound is seen as a potential long-term leader in the AI Revolution. This is due to its innovative technology stack, which includes Chat AI integrations.
The technology is gaining traction in sectors such as automotive, restaurants, and e-commerce. The company’s diverse offerings are expected to drive the growth of its recurring revenue software model. Wedbush’s positive outlook is also based on SoundHound’s ability to enter new markets and improve its monetization strategies.
These are seen as key to strengthening its position in the voice and conversational AI space.
SoundHound’s stock target increases
However, another firm’s analysis suggests the stock appears overvalued at its current market capitalization of $6.25 billion.
The firm advises investors to carefully consider entry points. SoundHound AI has made significant progress in its partnership with French wholesale broker Apivia Courtage. The deployment of SoundHound’s Amelia AI Agents has handled over 100,000 customer service calls.
This has reduced direct customer queries by around 20%. The AI agents have mainly addressed questions about medical expense reimbursements and insurance guarantee levels. SoundHound AI reported strong revenue growth in the third quarter of 2024, reaching $25.1 million and beating the forecast of $22.6 million.
The success is attributed to organic demand growth and the impact of recent mergers and acquisitions. As a result, SoundHound AI has raised its revenue predictions for the fourth quarter of 2024 and the full year of 2025. The company now expects revenues between $155.0 million and $175.0 million.
Following these positive results, another firm also upgraded its price target for SoundHound AI shares to $8.00, while maintaining a Buy rating. Despite these promising developments, the company’s stock has recently experienced some decline. However, SoundHound AI remains focused on its strategic plans for future quarters.
The company is prioritizing revenue growth, gross margin expansion, and seeking positive adjusted EBITDA.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
