In a research report issued Friday, Oppenheimer analyst Shaul Eyal reiterated an Outperform rating on shares of Nuance Communications Inc. (NASDAQ:NUAN) with a price target of $22, which represents a potential upside of 18% from where the stock is currently trading. The report follows the company’s fiscal third-quarter results, which were slightly better than its earnings pre-announcement that was released on July 21.

Eyal wrote, “Results reflected strong net new bookings growth, discipline in investments throughout the business and productivity improvements. For 4Q15, NUAN offered the mid-point of guidance below consensus ($509M/$0.35) of $497-513M/$0.33-0.37 but upped FY15 to $1.96-1.98B/$1.20-1.24. Recurring revenue continues to highlight the stabilization of NUAN’s revenue stream. We continue to view this quarter’s results as building blocks on the prior two quarters which have shown consistent operational improvement.”

Bottom line: “This marks the third consecutive quarter where the fundamentals continue to improve with ongoing buyback and cost management. We believe that momentum is building for NUAN and we continue to view the shares as attractively valued at 13.6x FY16 EPS.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 18.9% and a 73.9% success rate. Eyal has a -3.3% average return when recommending NUAN, and is ranked #14 out of 3728 analysts.

Out of the 9 analysts polled by TipRanks, 5 rate Nuance Communications stock a Buy, 3 rate the stock a Hold and 1 recommends Sell. With a downside potential of 1.3%, the stock’s consensus target price stands at $18.43.