Wedbush analyst Daniel Ives lowered the firm’s price target on Cerence to $19 from $31 and keeps a Neutral rating on the shares. While the company delivered good FY24 revenue and adjusted EBITDA guidance, it will be overshadowed by the large legacy contract write-down that is accelerating results for Q1 2024, the firm says. Overall, while it appears as management is seeing solid visibility into its pipeline, however, the company needs to continue capitalizing on the demand for AI solutions and address headwinds and smooth out business model transitions to regain trust from the Street, says Wedbush.
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