Needham & Company Maintains a 'Buy' on Nuance Communications (NUAN); Raising Estimates and Target Following Positive Preannouncement
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Price: $55.99 --0%
Rating Summary:
8 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 9 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Nuance Communications (NASDAQ: NUAN) price target raised from $25 to $31.
Needham analyst says, "Nuance preannounced solid results for the F4Q11 (SeptQ), presumably because of the simultaneous announcement of a $600m convertible debt deal. First, the quarter – the results were solid, with broad-based strength across NUAN’s divisions, including: consumer/mobile, healthcare, and enterprise (callcenter). Many are curious if there was an “Apple effect” during the quarter – the short answer is: unlikely, because Siri/AAPL was announced after the SeptQ end, and it remains unclear what the revenue arrangement is between Apple (Nasdaq: AAPL) and NUAN. While we have favored NUAN due to its healthcare exposure (recession resistant) and its recent accretive acquisition strategy, we were surprised to see the enterprise business performed well (has been an underperformer). As for the impending $600m convertible debt deal, we believe the deal may be executed quickly. Our belief is that rather than “rotate/retire” existing debt, NUAN is likely to add to its total debt load; intended purposes include M&A and a new $200m stock buyback program (buyback timing uncertain)." (Needham raises FY12 EPS esitmate from $1.55 to $1.61)
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 $23.49 yesterday.
Needham analyst says, "Nuance preannounced solid results for the F4Q11 (SeptQ), presumably because of the simultaneous announcement of a $600m convertible debt deal. First, the quarter – the results were solid, with broad-based strength across NUAN’s divisions, including: consumer/mobile, healthcare, and enterprise (callcenter). Many are curious if there was an “Apple effect” during the quarter – the short answer is: unlikely, because Siri/AAPL was announced after the SeptQ end, and it remains unclear what the revenue arrangement is between Apple (Nasdaq: AAPL) and NUAN. While we have favored NUAN due to its healthcare exposure (recession resistant) and its recent accretive acquisition strategy, we were surprised to see the enterprise business performed well (has been an underperformer). As for the impending $600m convertible debt deal, we believe the deal may be executed quickly. Our belief is that rather than “rotate/retire” existing debt, NUAN is likely to add to its total debt load; intended purposes include M&A and a new $200m stock buyback program (buyback timing uncertain)." (Needham raises FY12 EPS esitmate from $1.55 to $1.61)
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 $23.49 yesterday.
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