Ladenburg Thalmann starts SoundHound at Buy By

© Reuters. Ladenburg Thalmann starts SoundHound (SOUN) at Buy

Ladenburg Thalmann initiated coverage on voice recognition company, SoundHound AI Inc. (NASDAQ:) with a Buy rating, and set a 12-month price target on the company’s shares at $4.00.

Over the past two decades, SoundHound has honed its technology, combining it with internal AI and LLMs to create tailored solutions for specific industries.

Currently, the company derives a significant portion of its revenue from the automotive sector, representing 25% of global auto sales through 20 brands. The penetration rate within this customer base stands at a mere 1-2%, leaving ample room for growth, especially with voice-enabled units projected to make up 70% of shipments by 2026.

SoundHound is also making waves in the restaurant industry, providing an automated voice platform that caters to small businesses in the services space. The company has also recently partnered with major quick-serve restaurant chains like White Castle, Jersey Mike’s, and Krispy Kreme.

The recent acquisition of Synq3 expands SoundHound’s customer base, adding further momentum to its growth trajectory.

Analysts at Ladenburg Thalmann are predicting a promising future for SoundHound, with the potential to emerge as a Rule of 40 SaaS company.

Shares of SOUN are down 4.52% in afternoon trading on Tuesday.