SoundHound Stock Pulls Back Sharply Overnight Despite Analyst PT Hike

SoundHound AI (NASDAQ: SOUN) has pulled back sharply overnight, and into the pre-market, with the stock trading 7.76% lower despite a recent price target increase from H.C. Wainwright. There is a complex interplay between analyst optimism and immediate market sentiment, with a more risk-off attitude coming to markets in the past week.

H.C. Wainwright analyst Scott Buck recently raised the firm's price target on SoundHound to $26 from $18, reiterating a “Buy” rating. This bullish outlook stems from the expectation of “material outperformance” in the coming months, potentially catalyzed by the Q3 results in November.

A key factor driving this optimism is the anticipated contribution from the recent acquisition of Interactions Corporation, which is not currently factored into the 2026 Street revenue forecasts. This suggests significant upside potential if the acquisition performs as expected.

The divergence between the positive long-term outlook presented by H.C. Wainwright and the immediate market reaction underscores the importance of considering both fundamental analysis and market sentiment when evaluating opportunities. While the raised price target reflects confidence in SoundHound's future growth potential, the current stock decline suggests that investors are adopting a wait-and-see approach, with the company's performance in the upcoming quarter potentially a pivotal point.