Craig-Hallum analyst Jeff Van Rhee lowered the firm’s price target on Cerence to $25 from $38 and keeps a Buy rating on the shares. The firm notes Cerence put up a strong quarter and a “very messy” outlook. Craig-Hallum believes the guide for FY24 embeds 10% “organic” revenue growth for 2024, and the FY25 target embeds about 6% organic top line. The firm thinks the valuation embedded an even worse outcome on the quarter. That said, Craig-Hallum is concerned at the relative lack of traction in connected versus all prior commentary/guidance, as OEMs seem to be slow rolling their deployments of Cerence connected technology and backlog growth for connected is less than overall backlog growth.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on CRNC:
- Cerence price target lowered to $19 from $31 at Wedbush
- Cerence price target lowered to $25 from $32 at Wells Fargo
- Cerence price target lowered to $23 from $35 at TD Cowen
- Cerence materially guiding down previous 2025-26 outlook, says Evercore ISI
- Cerence targets FY25 revenue excluding Legacy $310M-$330M