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Research Alert: CFRA Keeps Hold Opinion On Shares Of Nuance Communications, Inc.

05/11/2021 03:08

07:00 AM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target price at $56 on a P/E of 62.2x our FY 22 (Sep.) EPS estimate, above peers, but matching the pending all-cash acquisition offer by Microsoft. We raise our FY 21 EPS estimate to $0.80 from $0.76 and keep FY 22's at $0.90. NUAN posts Mar-Q EPS of $0.20 vs. $0.21, beating the $0.17 consensus. Pro-forma sales rose 9.8%, slightly better than expected, as 24% growth in the Healthcare segment was partly offset by a 2% decline in Enterprise. We are encouraged by an acceleration of Healthcare Cloud revenue growth to 30% (28% in the prior quarter), led by momentum from NUAN's Dragon Medical and DAX Cloud revenue. Despite tough comparisons from Enterprise, given the lumpiness of licensing deals, the segment did see healthy growth in its Security & Biometrics offerings. On March 1, NUAN completed the sale of its HIM transcription and EHR go-live services businesses, which creates a more nimble company. We continue to expect the Microsoft acquisition to close by the end of the calendar year.