Oppenheimer Has Outperform Rating On Nuance

Oppenheimer & Co. has an Overweight rating and a $21 price target on Nuance Communications, Inc. NUAN. In a note sent to investors, Oppenheimer writes, "CEO Paul Ricci kicked off the analyst day highlighting the greenfield market opportunity for Nuance in each of its three target markets with Enterprise a $20B opportunity, Healthcare a $15B opportunity, Mobile/Consumer a $5B opportunity taking Nuance's total addressable market (TAM) to $40B. Overall a positive tone from management on underlying business opportunities. We reiterate our Outperform and $21 PT and remain positive on Nuance given: 1) healthy secular growth trends in automated speech; 2) dominant market position; 3) relatively high revenue predictability (over 66%); 4) improving CFFO as it gets more aligned with net income as acquisition liabilities unwind." Shares of NUAN closed at $18.16 yesterday.