Wedbush Maintains Underperform on Nuance Communications

Wedbush is out with its report today on Nuance Communications NUAN, maintaining Underperform. In a note to clients, Wedbush writes, "We are decreasing GAAP and increasing non-GAAP estimates due to the earlier than expected close of the Equitrac acquisition. We also view the SVOX acquisition as a defensive move to take out a formidable competitor in TTS (text-to-speech). As we believe organic growth does not justify Nuance's premium valuation, we remain cautious on the stock." Wedbush maintains a $17.50 PT on NUAN. At the time of posting, shares of NUAN were trading at $22.34, up 0.77% from Wednesday's close.