Soundhound Ai (NASDAQ: SOUN) Gets Price Target Boost of 40% as Analyst Maintains Buy Rating

HC Wainwright & Co.'s Scott Buck raised their price target on Soundhound Ai (NASDAQ: SOUN) by 40% from $5 to $7 on 2024/03/04. The analyst maintained their Buy rating on the stock.

Despite "only OK" quarterly results, Buck believes that Soundhound's management commentary and forward performance targets will be enough to sustain the recent rally in the stock price. After reviewing Soundhound's Q4 and FY 2023 earnings, reported on February 29, 2024, Buck stated, "Investors should continue to buy SoundHound to benefit from its strengthening operating results."

SoundHound AI, Inc., the voice artificial intelligence platform provider, released its financial results for Q4 2023 and FY 2023. In Q4 2023, the company reported a loss per share of $0.07, which missed the Zacks Consensus Estimate of $(0.05) but beat Q4 2022's $(0.15) by 53%. Revenues for the quarter reached $17.15 million, falling short of the Zacks Consensus Estimate of $17.9 million but surpassing Q4 2022's $9.5 million by 80%. Additionally, SoundHound AI, Inc. announced the acquisition of SYNQ3 during the quarter.

For the full year 2023, SoundHound AI, Inc. achieved a loss per share of $0.40, surpassing FY 2022's $(0.74) by 46%. The company's revenue for FY 2023 reached $45.87 million, outperforming FY 2022's $31.13 million by 47%.

Looking ahead, SoundHound AI, Inc.'s management has provided guidance for FY 2024, forecasting revenue in the range of $63 million to $77 million. Furthermore, for FY 2025, the company anticipates revenue to exceed $100 million and aims to achieve positive adjusted EBITDA. CEO & Co-founder Keyvan Mohajer highlighted the company's progress in integrating new generative AI capabilities and its success in deploying real-world voice AI applications across various industries.

Currently, all top-rated analysts recommend either a Strong Buy or Buy rating for SOUN. No analysts consider it a Hold, and none recommend or strongly recommend selling the stock.

Since SoundHound AI, Inc.'s latest quarterly report on February 29, 2024, the stock price has experienced a decline of 24.2%. However, on a year-over-year basis, the stock has gained 72.5%, outpacing the S&P 500's growth of 26.7% during the same period.

HC Wainwright & Co. analyst Scott Buck specializes in the Technology and Industrials sectors, among others. However, according to WallStreetZen's rankings, Buck is positioned in the bottom 1% out of 4,485 Wall Street analysts, with an average return of -19.3% and a win rate of 29.2%.

SoundHound AI Incorporated, founded in 2005 and headquartered in Santa Clara, CA, offers a voice artificial intelligence platform that enables businesses to integrate conversational voice assistants into their products and services. The company's Houndify platform provides a range of tools, including automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions.

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