Oppenheimer analyst Brian Schwartz initiated coverage of SoundHound (SOUN) with a Perform rating. The firm believes SoundHound has potential to be a durable growth compounder. The company has a strong conversational AI technology platform that’s supported by referenceable customers who view it as a leader in speech-to-meaning capabilities, data sciences, unstructured analytics, and technology vision. Oppenheimer concludes that SoundHound has a technology advantage in the Voice AI market, a compelling value proposition, an enviable backlog-to-revenue ratio, and is well run. However, the firm worries that potential newer competitive threats and the pace of penetrating existing and new verticals may not match the bullish expectations reflected in the sales multiple of 26x its 2026 EV/revenue estimate.
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