Analysts at Stifel have reiterated their ‘Buy’ rating for artificial intelligence (AI)-powered search provider Coveo Solutions as the firm has unveiled additional proof of its generative artificial intelligence (GenAI) trial progress.
The analysts noted confirmation that Synopsys is the latest to adopt Coveo’s GenAI, initially one of 20 design partners for Coveo’s GenAI trial, reflected another early trial conversion and validation from early-access customers.
“[The] leading provider of electronic design automation software, semiconductor intellectual property, and security solutions, will now be using GenAI to drive more assisted experiences for customers, followed by improving employee experiences, with Coveo helping accelerate the configuration and go-to-market of their GenAI platform with intelligent search and recommendations behind the scenes,” they noted.
“For customer use-cases, Synopsys will leverage GenAI to enable more contextual recommendations around tools and how multiple tools can work together to drive more efficient workflows for specific customer needs. For employee use-cases, GenAI will be used to improve productivity by enhancing knowledge management for staff to quickly find information/solutions without having to refer to lengthy manuals and documentations, in addition to assisting code development to ensure consistency and compliance.”
The showcase of a live GenAI deployment for Xero underscored Coveo’s unique value proposition and accelerated time-to-market for GenAI, they added.
It showcased how Coveo’s GenAI enhanced Xero’s customer support portal with more predictive search and support capabilities for their 3.7 million customers, the analysts highlighted.
Plus, e-commerce is now on Coveo’s GenAI roadmap earlier than expected, potentially commercially available in the coming months.
“The new feature will allow e-commerce vendors to leverage rich content like buying guides and how-to documentation to enhance generated answers to search queries, providing embedded product links within the answer to relevant products in conjunction with top categories and broader product catalogue to drive a more traditional e-commerce purchase journey,” they wrote.
“In short, everything we heard serves as continued success proof-points for Coveo's ongoing GenAI trial, supporting our view for re-accelerated revenue growth and profitability ahead.”
They awarded the stock a C$14 price target. Coveo shares traded at C$11.65 on Monday afternoon.
Contact the author at emily.jarvie@proactiveinvestors.com
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