Breaking Down Cerence: 6 Analysts Share Their Views

6 analysts have expressed a variety of opinions on Cerence CRNC over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $13.17, a high estimate of $16.00, and a low estimate of $8.00. Marking an increase of 9.75%, the current average surpasses the previous average price target of $12.00.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Cerence among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Mark Delaney |Goldman Sachs |Lowers |Neutral | $8.00|$14.00 | |Quinn Bolton |Needham |Maintains |Buy | $16.00|$16.00 | |Chris McNally |Evercore ISI Group |Raises |In-Line | $9.00|$6.00 | |Quinn Bolton |Needham |Maintains |Buy | $16.00|$16.00 | |Quinn Bolton |Needham |Announces |Buy | $16.00|- | |Mark Delaney |Goldman Sachs |Raises |Neutral | $14.00|$8.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cerence. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cerence compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cerence's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Cerence's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Cerence analyst ratings.

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Discovering Cerence: A Closer Look

Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.

Key Indicators: Cerence's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Cerence's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -63.21%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Cerence's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -47.72%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cerence's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -18.55%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Cerence's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -3.68%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Cerence's debt-to-equity ratio surpasses industry norms, standing at 2.24. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.