Wainwright Cuts SOUN Stock Price Target after Q4 — Still Sees 130%+ Upside

2026-03-04 08:38:28

Shares of SoundHound AI (SOUN) have slipped roughly 2% over the past five days, even after the company reported strong Q4 2025 results last week. Following the earnings release, H.C. Wainwright analyst Scott Buck lowered his price target on the stock from $26 to $20 but maintained a Buy rating. Despite the reduced target, he still sees more than 130% upside, pointing to solid revenue growth, expanding partnerships, and long-term opportunities in conversational AI.

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For context, SoundHound delivers AI-powered voice solutions across industries such as automotive, restaurants, and enterprise services.

Why Wainwright Lowered Its Target on SOUN

Buck said he lowered his price target due to near-term valuation pressure across the software sector. However, he emphasized that organic growth remains strong, driven by new contract wins and customer renewals across multiple industries.

Meanwhile, SoundHound AI reported Q4 fiscal 2025 revenue of $55.1 million, beating Wainwright’s $52.1 million estimate and the broader Wall Street consensus of $54.0 million.

Earlier, Buck also noted that the company aims to reach adjusted EBITDA break-even by late 2026 while continuing to prioritize growth. Overall, he expects strong revenue expansion through 2026.

Other Analysts Weigh In on SOUN

Following the results, Piper Sandler’s four-star-rated analyst James Fish lowered his price target on SOUN from $11 to $9 and maintained a Hold rating. Fish described the fourth quarter as mixed. While revenue was largely in line with expectations, profitability came in below estimates.

He also noted that the company’s forward guidance topped expectations but raised questions about how SoundHound plans to achieve that growth. Fish suggested the company may need to pursue more aggressive strategies or potential M&A to meet its targets, given its current growth trajectory.

Is SOUN a Good Stock to Buy?

According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with six Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $14.83, suggesting a potential upside of 74% from the current level.

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