A near 45% decline in SoundHound AI Inc (NASDAQ: SOUN) is an opportunity to build a position in quality name with significant potential for upside, says a Ladenburg Thalmann analyst.

$SOUN has been under immense pressure in recent days after Capybara Research published a short-sell report on the voice AI and speech recognition company.

But Glenn Mattson of Ladenburg Thalmann shrugs off that report and recommends investors to load up on the SoundHound stock as it’s the real thing

His buy rating on the Nasdaq-listed firm is coupled with a $7.0 price objective that suggests about a 40% upside from here.

The bullish call arrives more than a month after SoundHound said its adjusted EBITDA climbed over 80% on a year-over-year basis in Q4.

SoundHound claims its AI enabled voice capabilities are superior than its peers.

Glenn Mattson is constructive on $SOUN also because its technology is actually applicable in real-world scenarios. His research note reads:

The Ladenburg Thalmann analyst expects the California-based company to grow at a compound annualised rate of 50% over the next two years. Note that the leader of AI space – Nvidia Corp also has a stake in SoundHound shares.

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