Update shared on 15 Nov 2025
Fair value Increased 2.26%Analysts have modestly raised their price target for SoundHound AI from $16.56 to $16.94. They cite recent better-than-expected results and notable international customer wins as key drivers behind the update.
Analyst Commentary
Recent analyst reports provide insight into the different factors influencing SoundHound AI's updated valuation. Perspectives reflect both optimism about the company's progress and caution about certain challenges ahead.
Bullish Takeaways
- Bullish analysts highlight slightly better-than-expected quarterly results as a sign of improved execution and effective management.
- There is increased interest in the company's significant international wins, particularly in the Asia-Pacific region, which are seen as evidence of expanding global traction.
- The capture of a large IoT customer is viewed as an affirmation of SoundHound’s ability to innovate and penetrate new, high-growth verticals.
- Rising price targets reflect greater confidence in the company’s potential for future growth and value creation.
Bearish Takeaways
- Bearish analysts note that despite positive results, the company’s organic revenue growth guidance for the fourth quarter was implicitly reduced. This tempers enthusiasm about near-term prospects.
- Concerns remain about the ability to consistently deliver outsized results quarter after quarter, which poses risks to the current valuation levels.
- Questions persist regarding the sustainability of new customer wins and whether these gains can be translated into long-term, recurring growth.
- Cautious outlooks suggest a need for clearer visibility into future revenue streams and the pace of global expansion.
What's in the News
- The company raised its full-year 2025 revenue guidance to a range of $165 million to $180 million, reflecting optimism about future growth (Corporate Guidance).
- A partnership was announced with technology distributor Telarus to expand deployment of the Amelia 7 AI Agent and Autonomics platforms to thousands of enterprise customers (Client Announcements).
- The company partnered with Apivia Courtage to deploy the Amelia 7 AI agent platform in insurance contact centers, aiming to enhance productivity and customer service through advanced agentic AI (Client Announcements).
- The organization teamed up with Primary Health Solutions to launch "Denise," an AI-powered patient engagement platform, supporting seamless healthcare scheduling and communication (Client Announcements).
- SoundHound Chat AI Automotive, a generative AI voice assistant, was rolled out in select Jeep vehicles across Europe, providing drivers with dynamic, conversational in-car experiences (Product-Related Announcements).
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from $16.56 to $16.94 per share, reflecting improved valuation and a positive outlook.
- Discount Rate: Edged up marginally from 8.40% to 8.40%, suggesting analysts are factoring in a nearly unchanged risk profile.
- Revenue Growth: Projected revenue growth has risen modestly from 32.56% to 33.01%, indicating slightly stronger top-line expectations.
- Net Profit Margin: Declined fractionally from 12.56% to 12.50%, pointing to a slightly slimmer anticipated profitability.
- Future P/E: Dropped substantially from 273.72x to 254.10x, suggesting improved earnings projections or a more attractive valuation multiple.
Disclaimer
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