Source: Zhithon Finance
Wedbush believes that Soundhound will achieve greater growth in 2025 and maintains an "outperform" rating on the stock, raising its Target Price from $10 to $22.
AI voice platform. $SoundHound AI (SOUN.US)$ The stock price soared at the end of 2024, having increased by over 291% since early November, with a significant rise of over 16% yesterday. Wedbush believes that the company will achieve greater growth in 2025 and maintains an "outperforming Large Cap" rating on the stock, raising its Target Price from $10 to $22.
Wedbush analysts led by Daniel Ives stated in an investor report: "Due to the company's focus on maintaining a strong balance sheet to drive its growth plans, it recently shifted to an aggressive yet value-accretive acquisition strategy, acquiring three companies (Amelia, SYNQ3, Allset) in the past 18 months to expand its influence in voice AI solutions and seize more opportunities."
Soundhound is still in the early stages of capitalizing on enterprise AI spending, with its conversational AI use cases being increasingly adopted by restaurants and the Autos industry. Wedbush expects Soundhound's influence to further expand as it ventures into the voice AI E-Commerce market in 2025.
Eves added: "The company will continue to leverage its partnership with$NVIDIA (NVDA.US)$The partnership will bring voice-generating AI to edge devices without cloud connectivity, which will be showcased at the 2025 International Consumer Electronics Show (CES), indicating ongoing improvements in the technology stack while seeking to launch the third pillar of its growth strategy (voice commerce ecosystem) in 2025.
Weebler Finance stated in their analysis of the stock last week, "The company's EV/Sales ratio is close to 72, nearly 2000% higher than the industry median of 3.45."
Weebler Finance added, "Although valuations show a huge discrepancy from normal levels in the industry, the company's growth is also quite impressive. For example, while the expected revenue growth median for the industry is 5.6%, the company expects a revenue growth rate exceeding 74%, with a difference of over 1200%. Considering that SoundHound AI will be a disruptive game changer leading a generational shift, we believe the long-term outlook is even more promising, indicating a significant increase in the stock price in the future."
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