SoundHound downgraded to Neutral from Buy at Ladenburg

Ladenburg downgraded SoundHound (SOUN) to Neutral from Buy with an unchanged price target of $7. The company reported “solid” Q3 results in line with the firm’s expectations, while the recent acquisition of a private company, Amelia, moves SoundHound into large enterprises and new verticals as well as brings significant scale to the business, the analyst tells investors. While the firm continues to view voice as a key early application for AI systems, it reduced its rating to Neutral due to near-term absorption of losses around the Amelia acquisition as well as “rapid share price appreciation.”