SoundHound AI stock price target raised to $26 from $18 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on SoundHound AI Inc. (NASDAQ:SOUN) to $26.00 from $18.00 on Thursday, while maintaining a Buy rating on the stock. The company, now valued at $8.7 billion, has seen its stock surge over 300% in the past year.

The firm noted that SoundHound AI shares have increased 7.9% in 2025, underperforming the Russell 2000’s 13.0% gain, but predicted "material outperformance" in coming periods with third-quarter results in November potentially serving as a catalyst. According to InvestingPro data, the stock has shown remarkable momentum, gaining 175% over the past six months and 15% in the last week alone.

H.C. Wainwright highlighted that current 2026 Street revenue forecasts of $214.0 million do not include contributions from the recent Interactions Corporation acquisition, which is expected to add significantly to revenue next year. InvestingPro analysis indicates the company is currently trading at premium valuations, with 14 additional ProTips available for subscribers to better understand the stock’s potential.

The research firm pointed out that consensus estimates suggest 28.9% growth for 2026, well below the nearly 50.0% growth seen in 2022 and 2023, 84.6% growth in 2024, and forecasted 96.0% growth for 2025.

H.C. Wainwright expressed confidence in management’s ability to repeat its cross-sell and upsell strategy with Interactions after demonstrating success with the Amelia acquisition, while noting that analysts currently model a 2026 adjusted EBITDA loss of just $3.9 million, suggesting a clearer path to profitability.

In other recent news, SoundHound AI, Inc. has made significant strides with a series of strategic developments. The company announced its acquisition of Interactions, a provider of AI-powered voice assistants, for approximately $60 million. This acquisition aims to bolster SoundHound’s capabilities in conversational AI technology and is expected to immediately enhance the company’s operating profitability. In addition, SoundHound has partnered with Red Lobster to implement AI-powered phone ordering systems across all restaurant locations, streamlining operations by handling multiple calls simultaneously and integrating directly with point-of-sale systems.

SoundHound has also collaborated with Apivia Courtage to deploy agentic AI technology in contact centers, resulting in a 20% productivity increase. Another partnership with Primary Health Solutions introduces an AI-powered patient engagement platform named "Denise," designed to improve appointment management and reduce patient hold times. Furthermore, DA Davidson has raised its price target for SoundHound AI to $17 from $15, maintaining a Buy rating, reflecting confidence in the company’s recent acquisition and strategic partnerships. These developments underscore SoundHound’s ongoing efforts to expand its AI capabilities and market presence.

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