SOUN Stock Hits 2-Month High, Rallying Toward Biggest Gain in 3 Months Despite Analyst Target Cuts

The price target cuts come after SoundHound AI posted record quarterly revenue of $61.9 million and a smaller-than-expected adjusted loss.

• Despite SoundHound exceeding Wall Street’s expectations with second-quarter results, DA Davidson and Piper Sandler lowered their price targets.
• They cited valuation and execution risks tied to future bookings.
• SoundHound reiterated its 2027 revenue target of $350 million to $400 million, supported by the planned LivePerson acquisition.

Shares of SoundHound AI (SOUN) gained in midday trade on Thursday, on track to notch their biggest single-day gain in three months, despite Wall Street trimming its price target after the company’s second quarter results.

SOUN stock gained over 11% in morning trade, hitting a two-month high, and was among the top trending tickers on Stocktwits at the time of writing.

The rally came after SoundHound reported record second-quarter revenue of $61.9 million, ahead of analysts' estimates of $52 million, according to Koyfin. The company reported an adjusted loss of $0.02 per share, narrower than Wall Street's expectation for a $0.05 per-share loss.

Despite the beat, DA Davidson and Piper Sandler both lowered their price targets on SOUN stock. 

Analysts Trim Price Targets Despite Strong Quarter

DA Davidson’s Gil Luria cut his target to $10 from $12 but maintained a ‘Buy’ rating. Luria said the company delivered "a strong revenue upside driven by OASYS demand and large customer wins," adding that management's fiscal 2027 revenue targets remain supported by the planned acquisition of LivePerson.

Piper Sandler analyst James Fish reduced his price target to $7 from $8 while maintaining a 'Neutral' rating. He stated that while the quarter showed “strength with in‑period license deals,” key “go‑gets” in the backlog and future bookings still need to materialize. 

LivePerson Deal Remains Central To Growth Strategy

SoundHound reaffirmed its target of generating $350 million to $400 million in revenue in 2027. The forecast includes at least $100 million in expected revenue from LivePerson's long-standing enterprise customer base following the planned acquisition.

Management also highlighted an estimated $500 million cross-selling opportunity across the combined customer base, which it believes could support future revenue growth.

Retail Investors Focus On Pipeline 

On Stocktwits, retail sentiment around SOUN stock improved to ‘extremely bullish’ from ‘bullish’ territory over the past day, while chatter jumped to ‘extremely high’ from ‘normal’ levels. Platform data showed a message volume jump of over 500% in the last 24 hours.

One investor said analysts on the earnings call appeared more focused on the strength of SoundHound's future pipeline than on near-term financial results.

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Another stated that the company has now delivered three consecutive quarterly earnings and revenue beats while continuing to add new enterprise customers.

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Despite Thursday's rally, SOUN shares remain down about 30% this year and more than 35% over the past 12 months.