Raymond James Downgrades Cerence To Market Perform From Outperform As It Falls Short Of Analyst Price Target

Raymond James analyst Brian Gesuale downgraded Cerence Inc (NASDAQ:CRNC) to Market Perform from Outperform after the share price dropped from the firm's initial $115 price target.
The current share price was 8.1% above the price target.
Gesuale is comfortable with FY21 estimates and sees an upside.
However, expectations for growth above market, connected revenue, and prepaid license revenue estimates in FY22 have shifted from being conservative over the past 12-months to being more reflective or even slightly optimistic of reality, Gesuale's research note stated.
Cerence will replace Adtalem Global Education Inc (NYSE:ATGE) in the S&P MidCap 400 on July 7 before the market open.
Price action: CRNC shares traded lower by 4.60% at $118.60 in the market session on the last check Wednesday.

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