SoundHound AI (NASDAQ: SOUN) has caught Wall Street’s attention after the company reported impressive earnings, with analysts projecting more upside for the stock.
SOUN ended Friday’s session at $13.55, up 26%, though it remains down more than 32% year to date.
The momentum followed the voice-based artificial intelligence (AI) company’s “strongest ever quarter,” as described by CEO Keyvan Mohajer.
In Q2, SoundHound reported an adjusted loss of $0.03 per share on revenue of $42.7 million, surpassing Wall Street estimates of a $0.05 loss and $32.9 million in sales. Revenue surged about 217% year-over-year.
Management also raised its 2025 revenue outlook to between $160 million and $178 million, slightly above the prior range of $157 million to $177 million.
Wall Street predicts SOUN stock price
On the price outlook, analysts polled by TipRanks have given the stock a ‘Strong Buy’ consensus. Of the five analysts covering SOUN, four recommend ‘Buy’ and one recommends ‘Hold.’ Their 12-month price targets average $14.80, representing a 9.23% upside from the latest close, with forecasts ranging from $12 to $18.
Among the analysts, DA Davidson raised its price target from $10 to $15. He reiterated a ‘Buy’ rating, citing strong quarterly performance, sequential growth across all product lines, robust demand from diverse industries, major new client wins in OEM and restaurant sectors, and rapid pipeline expansion.
The firm noted SoundHound’s growing market share in a large, underpenetrated market and its progress toward profitability.
Meanwhile, James Fish of Piper Sandler maintained a ‘Hold’ rating with a $12 price target, reflecting a more cautious stance despite the recent rally.
Featured image via Shuttertsock.
