The firm cited strong second-quarter results and successful execution on large enterprise deals as key reasons for the upgrade.
SoundHound AI Inc. (SOUN) stock was in the spotlight on Monday morning after the shares received an upgrade from Ladenburg Thalmann, which raised its rating to ‘Buy’ from ‘Neutral’ and raised the price target to $16 from $9.
The brokerage cited strong second-quarter (Q2) results and successful execution on large enterprise deals as key reasons for its upgrade, as per TheFly. SoundHound AI stock shot up over 13% on Monday morning. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
The stock experienced a 176% increase in user message count over 24 hours, as of Monday morning. A Stocktwits user said the business has ‘great demand’.
Another user commended the Q2 earnings print.
Ladenburg sees sales growth momentum as justifying its increased spending levels. The brokerage remains optimistic about the opportunity in voice-based artificial intelligence, identifying it as one of the most promising early-use cases in the AI space.
The firm believes SoundHound’s products cater to businesses that want to integrate AI-driven voice features into their operations.
The company’s Q2 revenue jumped 217% year-on-year (YoY) to $42.7 million, beating the analysts’ consensus estimate of $32.88 million, as per Fiscal AI data. The adjusted loss per share of $0.03 came in wider than the consensus estimate of a loss of $0.01.
The company raised its FY2025 revenue guidance to a range of $160 million and $178 million. On August 7, SoundHound launched Vision AI, a visual recognition engine built directly into its voice-centric platform.
SoundHound AI stock has lost over 24% year-to-date and has gained over 190% in the last 12 months.
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