Deutsche Bank Sees Better Visibility Into Revenue Transition For Nuance Communications

In a report published Thursday, Deutsche Bank analyst Nandan Amladi reiterated a Buy rating and $25.00 price target on Nuance Communications (NASDAQ: NUAN).

In the report, Deutsche Bank noted, “NUAN shares are flat this year vs. the NASDAQ up 12%, on continuing concerns about NUAN's revenue transition and downward guidance revisions. A decline in short interest and negative options skew suggest sentiment is getting more positive. Our view on the stock remains constructive, as we believe NUAN's market opportunity and competitive position, particularly in the healthcare segment, are still strong. This note aims to frame the revenue model transition, competitive landscape and metrics investors should look for, ahead of earnings on November 24. We reiterate our Buy rating on sound fundamentals, cheap valuation and near-term catalysts.”

Nuance Communications closed on Wednesday at $15.18.