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FBR Capital Maintains an 'Outperform/Top Pick' on Nuance Communications (NUAN); Solid March Results; Strong Secular Trends Well Intact

May 11, 2011 7:26 AM EDT
Get Alerts NUAN Hot Sheet
Price: $55.99 --0%

Rating Summary:
    8 Buy, 9 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 10
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FBR Capital maintains an 'Outperform/Top Pick' on Nuance Communications (NASDAQ: NUAN), PT raised from $22 to $25.

FBR analysts said, "We maintain our rating while raising our price target from $22 to $25 (16x our FY12 EPS estimate) to reflect our new estimates and further signs of stabilization in the field. We believe Nuance’s fundamental profile remains very strong, as double-digit organic growth and an expanding margin profile appear to be on the horizon on the heels of strong secular trends and widespread adoption for the company’s advanced speech recognition capabilities in the field."

"For F3Q11 (June), we are increasing our revenue estimate to $337.4 million from $329.8 million, while our pro forma EPS estimate of $0.34 remains unchanged. For FY11, we are increasing our estimates to $1.35 billion and $1.34 up from $1.34 billion and $1.32. For FY12, we are increasing our estimates to $1.50 billion and $1.53 up from $1.49 billion and $1.49. We note that our FY12 estimates do not reflect the Equitrac acquisition."

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 $21.62 yesterday.


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