Why Are Cerence Shares Trading Higher Today?


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


  • Wells Fargo analyst Colin Langan upgraded Cerence Inc (NASDAQ:CRNC) from Equal-Weight to Overweight and an $85 price target, down from $91, implying a 15% upside.
  • Langan noted Cerence is down about 50% from its high and 34% since reporting FY21 results and guiding below consensus for FY22.
  • On the heels of the cautious FY22 guidance, Cerence announced a sudden change in leadership, promoting Stefan Ortmanns to CEO.
  • With the terrible news seemingly priced in, Cerence is now trading at 7x FY22 EV/Sales, a discount to SaaS peers at 10.6x.
  • Langan highlights that Cerence is trading at 14x FY23 EBITDA, in line with growth auto parts, yet Cerence has higher margins and long-term growth than these names.
  • Additionally, Toyota Motor Corp's (NYSE:TM) TMNA chose Cerence Browse, an AI-powered, cloud-based content domain, to bring the power and intelligence of internet search engines directly into Toyota and Lexus vehicles in its next-generation multimedia system. TMNA is the first automaker to deploy Cerence's new cloud service.
  • Price Action: CRNC shares traded higher by 6.86% at $73.94 on the last check Thursday.

20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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