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Wedbush Maintains an 'Underperform' on Nuance (NUAN); What Siri Effect? Reports Slightly Disappointing Results

February 10, 2012 8:37 AM EST
NUAN Hot Sheet
Rating Summary:
    6 Buy, 2 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wedbush maintains an 'Underperform' on Nuance Communications (NASDAQ: NUAN) price target of $18.00.

Analyst, Scott Sutherland, said, "Given the increased interest in speech, we were surprised Nuance reported a slight miss to expectations and slightly reduced guidance after the inclusion of Vlingo and buyback. Given slowing Mobile & Consumer growth, weak cash flow, and stretched valuation at 27x FY13 FCF despite only 10% organic revenue growth, we remain cautious and expect shares to trade off sharply."

"While we like the speech market, the cash flow lag, slowing organic growth, and valuation remain concerns...Slightly lowering estimates despite Vlingo acquisition and buyback."

For an analyst ratings summary and ratings history on Nuance Communications click here. For more ratings news on Nuance Communications click here.

Shares of Nuance Communications closed at $30.45 yesterday, with a 52 week range of $15.56-$31.15.


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