4 Analysts Assess Cerence: What You Need To Know

Analysts' ratings for Cerence CRNC over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $13.0, a high estimate of $16.00, and a low estimate of $6.00. Observing a 41.77% increase, the current average has risen from the previous average price target of $9.17.

Breaking Down Analyst Ratings: A Detailed Examination

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.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cerence. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cerence compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Cerence's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cerence's market position. Stay informed and make well-informed decisions with our Ratings Table.

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About Cerence

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.

Cerence's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Cerence faced challenges, resulting in a decline of approximately -32.14% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -37.25%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Cerence's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -13.83%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Cerence's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.97%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.09, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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