Evercore ISI says Cerence, on first glance, appeared to have a large positive upside surprise “for the first time in a while” following a “big” Q4 beat and “very strong” FY24 guidance. However, “there is a big asterisk” as the investor deck and associated call reveal that Cerence is “actually materially guiding down” its previous 2025-26 revenue and EBITDA outlook, the analyst tells investors. Essentially, Cerence’s core earnings are around $1.25 per share in 2024-25 with targets to grow that towards $1.75-plus in 2027, which “looks 30-40% below current consensus,” added the analyst, who has an In Line rating on the shares.
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