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Craig-Hallum upgrades Cerence to Buy, ups price target to $40
The Fly

Craig-Hallum upgrades Cerence to Buy, ups price target to $40

As previously reported, Craig-Hallum analyst Jeff Van Rhee upgraded Cerence to Buy from Hold with a price target of $40, up from $24. The print on the quarter appears well ahead, but normalized for "unusuals" the firm sees it as in-line, with the outlook reiterated. Craig-Hallum also notes that extensive modeling and deconstruction of the model leaves it concluding that the area of most concern in its opinion — connected revenue — is largely derisked in the forward outlook from the company. While the next few quarters will be ugly on the top line, 2024 is going to steadily come into clearer focus and what investors will see is an EBITDA number approaching $100M, top line growth of 35% and an EV/2024 EBITDA multiple of 14.3-times, the firm argues.

Published first on TheFly

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