Wedbush Securities Expects Solid Start To Year For Nuance Communications

In a report published Tuesday, Wedbush Securities analyst Shyam Patil reiterated a Neutral rating and $16.00 price target on Nuance Communications (NASDAQ: NUAN).

In the report, Wedbush Securities noted, “As Nuance's business continues to transition toward ratably recognized recurring revenue, we believe the key metrics to measure business performance are net new bookings growth, recurring revenue and cash flow. As we have mentioned previously, we are becoming more optimistic, but we are maintaining our NEUTRAL, as we would like further confirmation that the underlying fundamentals remain healthy. We believe that shifting investor focus toward the key business metrics and continued execution are likely the main catalysts for the stock.”

Nuance Communications closed on Monday at $13.80.