Wedbush: SoundHound AI (SOUN.US) starts a new phase of growth! Potential share price increase of 26%

The Zhitong Finance App learned that investment bank Wedbush said that the latest performance and guidelines announced by voice recognition company SoundHound AI (SOUN.US) have laid the foundation for the next phase of its artificial intelligence (AI) related growth. The bank maintains SoundHound AI's “outperforming the market” rating, with a target price of $18. This target price has room for an increase of nearly 26% from the stock's closing price of $14.23 on Thursday.

According to financial reports, SoundHound AI's third-quarter revenue was US$42.049 million, up 68% year over year. Under non-GAAP accounting standards, gross margin was $24.917 million, up 66% year over year; adjusted profit before interest, tax, depreciation and amortization (EBITDA) was -145 million US dollars, compared to -159 million US dollars in the same period last year; net loss was 130 million US dollars, net loss of 150 million US dollars for the same period last year. Additionally, the company raised its full-year revenue forecast for 2025, which is expected to be between $165 million and $180 million.

In response, the team led by Wedbush analyst Dan Ives wrote in a customer report: “SoundHound AI slightly raised its 2025 revenue guidance to $165 million to $180 million (previously, the guidance was $160 million to $178 million). We think this forecast is still conservative because the company's demand in various vertical sectors remains strong — the automotive sector has improved slightly, while other verticals have maintained strong growth.”

The analyst added, “Overall, we think this earnings release is another positive development in SoundHound's AI growth story. Despite increased competition and an uncertain macro environment, the company has shown strong monetization capacity in many high-potential artificial intelligence (TAM) industries and continues to move in the direction of profitable growth.”