DA Davidson has revised its price target for SoundHound (SOUN, Financial), reducing it from $13 to $10, yet maintaining a Buy rating on the company’s stock. This adjustment is part of a comprehensive update on its outlook for the software sector.
The firm is forecasting a potential economic slowdown in the United States, suggesting there could be one or two quarters of negative GDP growth this year. Such economic conditions are likely to result in reduced growth prospects and lower valuations across the board.
Moreover, DA Davidson anticipates a decrease in both consumer spending and corporate investments in the near term, regardless of ongoing tariff policies. This outlook points to a more cautious approach in assessing the software group’s future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for SoundHound AI Inc (SOUN, Financial) is $14.36 with a high estimate of $26.00 and a low estimate of $8.00. The average target implies an upside of 68.71% from the current price of $8.51. More detailed estimate data can be found on the SoundHound AI Inc (SOUN) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, SoundHound AI Inc's (SOUN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SoundHound AI Inc (SOUN, Financial) in one year is $7.46, suggesting a downside of 12.34% from the current price of $8.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SoundHound AI Inc (SOUN) Summary page.
