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Nuance Goes Higher As Bullish Analysts Chime In Following Rumor

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Nuance Communications (NASDAQ: NUAN) shares continue to trade up Tuesday after analysts gave credence to a report that the voice-powered technology company may be acquired by Samsung Electronics and private equity investors.

Nuance changed hands recently at $19.21 a share, up 2.37 percent after a big gain Monday.

"A sale of the company appears to be playing out," Deutsche Bank analyst Nandan Amladi, who believes that activist investor Carl Icahn's 19 percent stake in Nuance makes a sale likely.

Amladi pegged Nuance's worth at $14 to $32 per share, reiterated a Buy and a $22 price target.

Oppenheimer analyst Shaul Eyal is less certain, calling the report "still speculation."

But Eyal added that Icahn "has a long history of pushing for strategic alternatives for his investments" and said Nuance may be worth from $25 to $30 per share.

Samsung is presently the largest customer for Nuance's mobile segment. "The question is, what does the new parent do with Nuances other segments?" asked Amladi.

The mobile segment accounted for only 24 percent of Nuance's 2013 revenue of $1.86 billion. Healthcare generated 47 percent with the remainder coming from the enterprise and imaging segments.

Latest Ratings for NUAN

DateFirmActionFromTo
Nov 2017Morgan StanleyUpgradesEqual-WeightOverweight
Aug 2017BarclaysMaintainsOverweight
Aug 2017Raymond JamesMaintainsStrong Buy

View More Analyst Ratings for NUAN
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Nandan AmladiAnalyst Color News Rumors Price Target Reiteration Analyst Ratings

 

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