SoundHound AI Inc. (SOUN) PT Raised to $8 at H.C. Wainwright

H.C. Wainwright analyst Scott Buck raised the price target on SoundHound AI Inc. (NASDAQ: SOUN) to $8.00 (from $7.00) while maintaining a Buy rating.

The analyst commented: "After the market close on November 12, SoundHound AI, Inc. reported 3Q24 operating results. Revenue of $25.1M exceeded our $22.6M forecast, benefiting from both organic demand and contribution from the recent M&A. On elevated levels of business demand, in part due to successful cross-selling and up-selling, management has increased its revenue outlook for 4Q24 and 2025. The company expects 2025 revenue of $155.0M to $175.0M, up 95.0% at the midpoint from 2024 levels. Revenue growth is balanced against expense discipline which is expected to drive positive adj. EBITDA as early as 4Q25. Further we have been impressed with how the company has managed its balance sheet. With $135.6M of available cash and only modest debt. The current cash position allows for flexibility to push organic growth initiatives or pursue additional M&A. Given the stronger than expected operating results and favorable outlook, we were somewhat surprised to see SOUN shares decline 17.1% versus a 0.9% decline in the Russell 2000 in Wednesday trading. We expect the company to continue to execute against its strategy in coming quarters, growing revenue, expanding gross margin, and pushing towards positive adj. EBITDA, which, in our view, should push shares higher. In addition, AI company demand should continue to drive investor attention to SOUN shares. We remain Buy-rated on SOUN shares and are increasing our price target to $8 from $7."

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