SoundHound price target raised to $26 from $8 at H.C. Wainwright

H.C. Wainwright analyst Scott Buck raised the firm’s price target on SoundHound (SOUN) to $26 from $8 and keeps a Buy rating on the shares. While the stock’s valuation is “taking a back seat to animal spirits near term,” it should be supported by business growth over time, the analyst tells investors in a research note. The recent share outperformance is being driven by a combination of factors including increasing demand for the company’s artificial intelligence-enabled services across multiple sectors, the analyst tells investors in a research note. H.C. Wainwright believes SoundHound’s valuation levels “may look stretched at today’s share price,” but says the company the company has built a scalable platform which should allow revenue, adjusted EBITDA and ultimately earnings to catch up to share price over time.