Canaccord Genuity Maintains a 'Buy' on Nuance Communications (NUAN); Analyst Day Preview: Advanced Speech Opportunity Provides Upward Estimate Bias

Canaccord Genuity maintains a 'Buy' on Nuance Communications (NASDAQ: NUAN) price target of $30.00.

Canaccord analyst, Richard Davis, said, "Our independent analysis of the mobile upgrade cycle to advanced speech technology implies upside to our growth estimates for Nuance. We expect this conclusion to seep into investors’ thinking following Nuance’s analyst day on Thursday. As such, we would have no hesitation buying NUAN shares ahead of the presentations and next-day summaries from a couple dozen analysts."

"Apple (Nasdaq: AAPL) resets the bar...again. Nuance provides speech recognition libraries and semantic language logic to augment Apple’s SIRI platform. Investors sometimes forget that SIRI is still in beta, so better functionality is yet to come. Meanwhile, there is a literal scramble by competitors to catch up."

"Financial implications: upward bias to estimates. Depending on our assumptions, we get between 100 and 500 basis points of upside to revenue and earnings growth for 2012-13 versus our current forecast of 13% (organic) and 15%."

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 $24.48 yesterday.

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