UPDATE: Stifel Nicolaus Increases Target to $32 on Nuance Communications

Stifel Nicolaus reiterates its Buy rating on Nuance Communications

and raises its price target by $5 to $32, despite a lackluster performance in the mobile space that lags Siri hype. Stifel Nicolaus says, "Our target price is based upon a 20x PE multiple on our FY12 EPS estimate of $1.59. Risks to our target price include the lack of adoption of speech technologies on the part of the enterprise and the consumer over the coming year and difficulties in integrating acquired assets as well as future acquisitions that could require the company to take on greater levels of debt." NUAN closed at $30.45 a share on Thursday.