SoundHound AI Stock Is Headed 19% Higher, According to 1 Wall Street Analyst
Up roughly 178% across 2024's trading, SoundHound AI (NASDAQ: SOUN) has been one of this year's most explosive artificial intelligence (AI) stocks. In fact, the only high-profile name in the space that has posted bigger gains is Super Micro Computer -- with its share price up roughly 255% across this year's first quarter.
While SoundHound AI stock has already recorded incredible gains in a very short time, at least one analyst thinks that it's on track to head even higher in the near term. In a note published on March 26, Ladenburg analyst Glenn Matson reiterated a buy rating on SoundHound and set a price target of $7 per share on the stock. With the stock closing out Q1 2024 priced at $5.89 per share, that would imply an additional upside of approximately 19%.
Matson expects that SoundHound will be able to grow its sales at an average annual rate of 50% over the next two years, and that it will shift into profitability on an earnings-before-interest-taxes-deprecation-and-amortization (EBITDA) basis in the second half of 2025. The analyst believes that the company's voice-based artificial intelligence platform will continue to see strong adoption among business customers and points to growing momentum for the company's Pillar II software for restaurants as a bullish indicator.
Source Fool.com
