Needham & Company Maintains a 'Buy' on Nuance Communications (NUAN) Following Analyst Day
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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 of $36.00.
Needham analyst says, "The NUAN analyst day was upbeat, and we left the meeting with optimism for growth catalysts in each of the four business units; specifically, we felt momentum in mobile/consumer was high, that a “rebound” in healthcare is likely, and better than expected results may come from the Imaging division. In the recent Nov 22nd call, NUAN spoke of how existing mobile deals were getting larger and “more strategic” in nature; we suspected the driver for mobile deal growth was handset companies playing “catch-up” with Apple (Nasdaq: AAPL) – analyst day commentary supported this logic, and we expect mobile/consumer to be strong in FY12-13. Several references to AAPL 4S were made in the analyst day, yet there was no “color” on the AAPL economic arrangement with NUAN. CEO Ricci summed up growth drivers by saying the world is changing from “recognition” and evolving to “outcomes” in speech (i.e., moving from straight translation of speech to text, and towards understanding “meaning” of context). In our view, Ricci sees the “AAPL effect” driving Siri-type deals, with NUAN the beneficiary as the speech front end of choice – and the impact is felt beyond mobile, and positively impacts NUAN in
Healthcare, Imaging and Enterprise."
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 $23.77 yesterday.
Needham analyst says, "The NUAN analyst day was upbeat, and we left the meeting with optimism for growth catalysts in each of the four business units; specifically, we felt momentum in mobile/consumer was high, that a “rebound” in healthcare is likely, and better than expected results may come from the Imaging division. In the recent Nov 22nd call, NUAN spoke of how existing mobile deals were getting larger and “more strategic” in nature; we suspected the driver for mobile deal growth was handset companies playing “catch-up” with Apple (Nasdaq: AAPL) – analyst day commentary supported this logic, and we expect mobile/consumer to be strong in FY12-13. Several references to AAPL 4S were made in the analyst day, yet there was no “color” on the AAPL economic arrangement with NUAN. CEO Ricci summed up growth drivers by saying the world is changing from “recognition” and evolving to “outcomes” in speech (i.e., moving from straight translation of speech to text, and towards understanding “meaning” of context). In our view, Ricci sees the “AAPL effect” driving Siri-type deals, with NUAN the beneficiary as the speech front end of choice – and the impact is felt beyond mobile, and positively impacts NUAN in
Healthcare, Imaging and Enterprise."
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 $23.77 yesterday.
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