Cerence price target lowered to $9 from $21 at Wedbush

Wedbush analyst Daniel Ives lowered the firm’s price target on Cerence to $9 from $21 and keeps a Neutral rating on the shares. Despite a beat on the top and bottom lines, Cerence’s guidance for FY24 was well below the Street’s expectations reflecting softness in the auto market as royalty trends head int he wrong direction, the analyst tells investors in a research note, adding that this is a major step back for the Cerence story. Cerence continues to have major challenges to get growth back on track.