Wedbush Downgrades Nuance Communications (NUAN) to Underperform; Comfortable With Q4 Results But Not Valuation

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Wedbush downgraded Nuance Communications (NASDAQ: NUAN) to Underperform.

Wedbush analyst says, "While we expect Nuance to report in line results and nudge up guidance due to M&A, given increasing competition, weak cash flow, and premium valuation, we see further upside as challenging. Thus, we downgrade to UP."

"Mobile, we would highlight AT&T (NYSE: T), Microsoft (Nasdaq: MSFT), Google (Nasdaq: GOOG), Vlingo, Swype, and others indicating traction against Nuance. Even key customer Apple appears to have taken a keener interest in offering its own speech products. In enterprise, Nuance’s coopetitive strategy still creates friction to partners such as Convergys (NYSE: CVG), Genesys, and Alcatel-Lucent (NYSE: ALU). While we believe Nuance will perform better in Healthcare, spending appears choppy."

For more ratings news on Nuance Communications click here and for the rating history of Nuance Communications click here.

Shares of Nuance Communications closed at $20.55 yesterday, with a 52 week range of $14.12-$20.97.

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