Cerence price target lowered to $23 from $35 at TD Cowen

TD Cowen lowered the firm’s price target on Cerence (CRNC) to $23 from $35 and keeps an Outperform rating on the shares. Fiscal Q4 results were better than expected and fiscal Q1 and FY24 guidance ranges were also stronger than expected, though the acceleration of about $68M of deferred revenue from the early termination of the company’s “Legacy” Toyota (TM) contract “somewhat skews the strong guidance,” the analyst tells investors. Another relative negative data point announced with results was the lowering the company’s medium-term revenue outlook, the analyst added.