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Investing.com - DA Davidson raised its price target on SoundHound AI Inc. (NASDAQ:SOUN) to $17.00 from $15.00 on Tuesday, while maintaining a Buy rating on the stock. The company’s shares have shown remarkable momentum, gaining nearly 14% in the past week and over 230% in the last year, according to InvestingPro data.
The price target increase follows SoundHound’s announcement of its acquisition of Interactions, a provider of AI-powered voice assistants to enterprises, for approximately $60 million in cash. The deal includes potential additional payments contingent on specific revenue milestones. With a current market capitalization of $6.2 billion and a healthy current ratio of 4.84, SoundHound appears well-positioned to integrate this acquisition.
DA Davidson views the acquisition favorably, noting that it adds major brands for SoundHound to sell into and is expected to be immediately accretive to margins. The firm believes this transaction further extends SoundHound’s market leadership position.
The acquisition represents a strategic expansion of SoundHound’s capabilities in the AI-powered voice assistant market, particularly in the enterprise segment where Interactions has established relationships.
SoundHound AI specializes in voice AI technology that enables natural language processing for various applications across multiple industries, including automotive, IoT devices, and customer service platforms.
In other recent news, SoundHound AI, Inc. has made several strategic moves to enhance its capabilities and market presence. The company announced the acquisition of Interactions, a firm specializing in AI for customer service, for approximately $60 million. This acquisition is expected to immediately boost SoundHound’s operating profitability. Additionally, SoundHound has partnered with Primary Health Solutions to implement an AI-powered patient engagement platform, "Denise," aimed at improving patient appointment management. In the automotive sector, SoundHound’s voice AI assistant has been integrated into Jeep vehicles across Europe, enabling drivers to interact with their vehicles using conversational AI. The company has also launched Vision AI, a new visual understanding engine that complements its existing voice platform, facilitating more contextually aware interactions. In financial news, Northland has upgraded SoundHound AI to Outperform and raised its stock price target to $14.50, citing a return to pro forma organic growth and strong pipeline potential. These developments indicate a period of robust activity and strategic expansion for SoundHound AI.
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