UBS Maintains a 'Buy' on Nuance Communications (NUAN); Q1 Blues Hit Again

UBS maintains a 'Buy' on Nuance Communications (NASDAQ: NUAN) price target raised $1 to $30.

UBS analyst says, "Expectations for Mobile segment were high going into FQ1 release, driven by success of iPhone 4S/Siri (Nasdaq: AAPL) and interest at CES conference. We were guilty too, modelling +3% q/q growth after -3% in F1Q11 & -1% in F1Q10; actual came in at -9%, or $108.5M vs. UBSe $122.3M, consensus $118M. Besides FQ1 seasonality, Mobile contracts are getting larger & more complex, leading to some delays in booking & rev rec timing, and confirming that revenues are not mainly unit-driven. We expect a rebound in FQ1-Q3, especially as OEMs scramble to ship products before ‘12 holiday season...FQ1 at bottom half of guidance range; maintain FY12 estimates of $1.58."

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 $30.45 yesterday.

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