Oppenheimer Keeps a Buy Rating on Nuance Communications

In a report released today, Shaul Eyal from Oppenheimer maintained a Buy rating on Nuance Communications (NASDAQ: NUAN), with a price target of $23. The company’s shares closed yesterday at $15.28.

Eyal said:

“NUAN reported mixed F2Q results exceeding consensus on revenue but falling short on EPS and FY18 guidance. NUAN’s revised guidance (now 2-4% YoY growth vs. prior 3-5%) is mainly driven by weakness related to its Subscriber Revenue Subscription (SRS) business which has seen significant headwinds in India and Latin America. NUAN’s SRS decline and soft Enterprise execution concerns (rev. -7.7% YoY) were positively offset by strong Automotive (+11.8% YoY) and Healthcare (+9.5% YoY) performance. We believe NUAN’s new CEO, Mark Benjamin, who started on 4/23, should bring a fresh perspective to its business over the coming months, which could be followed by initiatives to improve consistency and enhance shareholder value, supporting our longer-term thesis.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 15.3% and a 66.9% success rate. Eyal covers the Technology sector, focusing on stocks such as Verint Systems Inc, Varonis Systems, and Proofpoint Inc.

Nuance Communications has an analyst consensus of Strong Buy, with a price target consensus of $20.50.

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Based on Nuance Communications’ latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $53.23 million. In comparison, last year the company had a GAAP net loss of $33.81 million.

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Nuance Communications, Inc. engages in the provision of voice and language solutions for businesses and consumers. It operates through the following segments: Healthcare, Mobile, Enterprise, and Imaging. The Healthcare segment offers transcription solutions and services that automate the input and management of medical information.