Wedbush: Raised target price for Soundhound (SOUN.US) to more than double! The 160% increase in the past month is expected to "ignite" until next year.

The stock price of the AI voice platform SoundHound (SOUN.US) skyrocketed at the end of 2024, rising nearly 160% in just the past month. Wedbush believes that the company will achieve even greater growth in 2025 and maintains an "outperform" rating on the stock, raising its target price from $10 to $22. Analysts at Wedbush, led by Daniel Ives, stated in an investor report, "As the company has been focused on maintaining a strong balance sheet to drive its growth plans, it has recently shifted towards an aggressive yet value-adding acquisition strategy, acquiring three companies (Amelia, SYNQ3, Allset) over the past 18 months to expand its presence in the voice artificial intelligence solutions space and to gain more opportunities." SoundHound is still in the early stages of capturing enterprise artificial intelligence spending, with its chat AI use case being increasingly adopted by more restaurants and automotive industries. Wedbush predicts that as SoundHound enters the voice AI e-commerce market in 2025, its influence will further expand. Ives added, "The company will continue leveraging its partnership with NVIDIA Corporation (NVDA.US) to bring voice generating AI to edge devices without cloud connections, which will be showcased at the 2025 Consumer Electronics Show (CES), demonstrating ongoing improvements in the technology stack while seeking to launch the third pillar of its growth strategy (voice commerce ecosystem) in 2025." Weebler Finance stated in its analysis of the stock last week, "The company's EV/Sales ratio is close to 72, nearly 2000% higher than the industry median of 3.45." Weebler Finance also added, "Despite the valuation showing a significant difference from the industry's normal levels, the growth relative to it is quite astonishing. For example, while the industry's median expected revenue growth is 5.6%, the company's expected revenue growth rate exceeds 74%, a difference of over 1200%. Considering that SoundHound's AI will be a disruptive game-changer leading a generational shift, we believe the long-term prospects are even more promising, indicating significant growth in the stock price in the future."