SoundHound AI (SOUN) has the potential to be a "durable growth compounder," Oppenheimer said in a note Thursday.

The investment firm said SoundHound has a solid conversational artificial intelligence technology platform backed by clients who consider it a leader in areas like speech-to-meaning, data sciences, unstructured analytics, and technology vision.

Meanwhile, the company is also supported by factors like an advantage in the Voice AI space in addition to a favorable value proposition, and a solid backlog-to-revenue ratio, the note said.

Oppenheimer said, however, that there are worries that "newer competitive threats" as well as the "pace of penetrating existing and new verticals" may not match the lofty expectations reflected in the sales multiple of 26x the investment firm's 2026 EV/revenue forecast.

Oppenheimer started coverage of SoundHound AI with a perform rating.

Price: 14.12, Change: +0.07, Percent Change: +0.49