SoundHound (SOUN) shares moved another 15% higher on Wednesday as investors reacted to positive comments from one of Wall Street’s biggest technology bulls earlier this week.
On Monday, Wedbush Securities analyst Daniel Ives reiterated his bullish outlook for the stock calling SoundHound an “Underappreciated Pure Play AI”.
Ives was one of the first Wall Street analysts ever to weigh in with an opinion on SoundHound shares initiating coverage of the stock on June 28, 2022 with a “Outperform” rating. At the time, Ives target price for the stock was $7.
In addition to affirming Wedbush’s outlook, Ives also increased his target price from $7 to $20, a price that shares rallied above on Wednesday. The stock currently trades above $22 per share.
The rest of Wall Street considers SoundHound favorably with 5 analyst rating the stock a “buy” along with two “hold” recommendations.
The company recently reported earnings that were better than the investor’s target.
For its most recent quarter, reported November 28, SoundHound beat their earnings per share target by $0.01 on revenue that was roughly 10% better than expected. The company’s posted revenue was also 89% higher than the same quarter last year.
Having rallied almost 300% in the last month, investors should expect shares of Soundhound to take a healthy rest after passing above $20.
Investors typically reflect on round numbered prices as a good price to consider taking profits, making them psychologically significant.
That said, the long-term trend for SoundHound remains bullish and recent posturing among investors suggests that the stock would rebound from a healthy correction to the $12.50-$15.00 range.
