Cerence downgraded to Hold at Needham as new analyst takes over

As previously reported, Needham downgraded Cerence to Hold from Buy and removed the firm’s previous $23 price target as the firm transferred coverage of the stock. While “impressed” with the company’s Gen AI features and product roadmap, the firm is waiting for these developments to positively impact the financial model, the analyst tells investors. The firm also believes investors are concerned that new management will lower “already reduced” long-term targets in the upcoming earnings call due to the recent CFO change, the analyst added.