UPDATE: Morgan Stanley Initiates Nuance Communications at Overweight on Voice Technology Adoption

Morgan Stanley initiated its coverage on Nuance Communications

with an Overweight rating and a price target of $31 a share. Morgan Stanley said, "NUAN is a long-term secular play on growing adoption of voice technology across multiple end markets, sustaining revenue growth of 12-15% for the next 3-5 years. At 16x fully taxed CY13 EPS, the stock looks cheap vs. the group at 18x despite strong secular trends, and we initiate at OW, $31 pt." Nuance Communications closed at $24.86 on Wednesday.