UPDATE: Stifel Nicolaus Downgrades Nuance Communications to Hold as Results Show Growth Decline

Stifel Nicolaus downgraded Nuance Communications

from Buy to Hold and removed the price target of $28.00. Stifel Nicolaus noted, "The decline in organic growth was driven by a series of headwinds within the healthcare business, which itself saw organic growth decline to 3% (the fourth straight quarter of organic growth decline). With challenges in the healthcare business clearly unresolved, we believe there are meaningful risks to the company's FY13 outlook, which continues to call for meaningful second half growth (despite a modest reduction in guidance). With eroding confidence in healthcare (a segment that has seen massive M&A investments over the past year), we are downgrading our rating on shares of Nuance to Hold." Nuance Communications closed at $24.55 on Thursday.