Goldman Sachs Downgrades Nuance Communications (NUAN) to Sell

Goldman Sachs downgraded Nuance Communications (NASDAQ: NUAN) from Neutral to Sell with a price target of $11.00. Analyst Greg Dunham doesn't view the stock as an acquisition candidate.

"Our illustrative LBO model indicates a -1% IRR for NUAN under our base case assumptions. However, assuming cost cutting and margin improvement, NUAN returns 1% while both CVLT (Nasdaq: CVLT) and INFA (Nasdaq: INFA) clear a 20% hurdle. We do not see NUAN as a potential acquisition candidate, and see growth and margins challenged, which is the basis for our downgrade," said Dunham.

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 $14.07 yesterday.

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