Deutsche Bank Reiterates Buy Rating on Nuance Communications (NUAN)

Deutsche Bank is out with a research report this morning, where it reiterates its Buy rating on Nuance Communications

; it has a $24.00 price target on the stock, up from $22.00. The DB analysts cited the company's recent Q2 pre-announcement, as well as the appointment of a new head of sales, a move the analysts think was aimed at allaying investor concerns that often accompany a major management change. The company expects to deliver non-GAAP rev/EPS in the range of $329m-$332m/$0.31-$0.32 vs. DB's $323m/$0.30 and Street's $322m/$0.30. As for valuation, the analysts remarked, “We adjust 2Q estimates, leaving forward revenue and EPS estimates unchanged but tweaking up our CY12 uFCF and 5-year uFCF growth rate. Our $24 price target is based on a CY12 uFCF/share estimate of $1.35 (up from $1.30), an EV/uFCF/G multiple of 1.1x, and a five-year growth rate, net of dilution, of 17%.