On Friday, DA Davidson maintained a Buy rating on SoundHound AI Inc. (NASDAQ:SOUN) and increased the shares price target to $7.50 from the previous $5.00. The firm's decision followed SoundHound's recent earnings report, which showcased revenues that aligned with market expectations. The artificial intelligence company has been experiencing strong demand for its solutions, a positive sign for its growth prospects.
SoundHound recently secured a new deal with a leading U.S. electric vehicle manufacturer and also signed an agreement with a large original equipment manufacturer (OEM), which will result in higher unit volumes through 2037. These developments indicate SoundHound's competitiveness in the AI industry and its ability to attract significant partnerships.
In addition to these deals, SoundHound has initiated a new revenue stream through collaboration with a prominent chip company. This move is expected to bolster the company's financial position and diversify its sources of income. DA Davidson's optimism about SoundHound's market performance is reflected in the revised price target.
SoundHound's success in gaining market share is notable, with the company reportedly having a robust pipeline of customers interested in its AI solutions. The analyst's commentary highlighted the company's momentum, stating, "SoundHound is winning market share and has customers knocking at its doors."
The upgraded price target to $7.50, up from $5.00, is a sign of confidence from DA Davidson in SoundHound's future performance. The firm's stance remains bullish, with a continuation of the Buy rating on the company's stock.
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