SoundHound AI (SOUN) is set to expand its enterprise presence and accelerate market penetration following its acquisition of customer service AI company Interactions, Wedbush Securities said in a Thursday note.

Wedbush called the purchase "a smart strategic move" that increases scale and flexibility as enterprises shift toward agentic interactions.

"With the close of this acquisition, SoundHound will provide a full suite of options for omnichannel Agentic AI and offer a path to full AI automation for customers that have historically relied exclusively on human-in-the-loop or agent-only solutions," Wedbush said.

The firm noted the acquisition fits with the company's existing solutions to create new revenue streams and cross-sell opportunities.

Wedbush reiterated its outperform rating on the stock and a $16 price target.

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