UPDATE: Standpoint Research Downgrades Nuance Communications, Inc. to Hold

On Tuesday, Standpoint Research downgraded shares of Nuance Communications

from Buy to Hold. Analyst Kevin Faulkner expects the voice recognition market to grow at “near double-digit rates annually for at least a few more years and should top $60 bln by 2015-2016.” This is important to Nuance because “Apple uses Nuance software on its iPhones and hospitals use the software to help cut expenses and take advantage of tax incentives,” said Faulkner. While Google

and Apple

are working on their own voice recognition software, “the market has probably already prices this in with Nuance at $14,” said the analyst. Shares of Nuance had been sliding from their 2012 peak, but are trading off the $14 low Faulkner mentioned. So far, shares are up 0.15 percent to $17.19 in Tuesday's trading.